Shiba Inu Breaks Bullish Triangle Pattern As Exchange Supply Drops 1% In August

Shiba Inu has broken out of a bullish symmetrical triangle pattern while posting a 4% daily gain and 15% weekly surge, though conflicting on-chain metrics suggest the rally faces uncertainty as exchange supply falls and long-term holders increase profit-taking activity.

What to Know:

• Exchange supply dropped from 122.54 trillion to 121.31 trillion tokens between July 31 and August 11, reducing immediate sell pressure
• Spent Coin Age Bands metric has risen to July 24 levels, indicating long-term holders may be taking profits
• SHIB price broke above $0.00001368 resistance with potential targets at $0.00001438 and higher levels

Technical Breakout Meets Supply Dynamics

The memecoin has demonstrated notable strength while Bitcoin reaches new all-time highs, with technical analysis revealing a clean break above the symmetrical triangle formation. Exchange reserves have declined nearly 1% over the past two weeks, dropping from 122.54 trillion tokens on July 31 to 121.31 trillion by August 11.

This supply reduction typically creates favorable conditions for price appreciation by limiting tokens available for immediate sale. The timing correlation appears significant, as Shiba Inu's price surge began shortly after exchange supply hit monthly lows on August 11.