SHIB Sell Wall Halts Rally; Ripple Burns $500k RLUSD; Cardano’s NIGHT Outtrades XRP and SOL
Shiba Inu (SHIB) rally has been stalled by heavy on-exchange supply: roughly 81.5 trillion SHIB remain on exchanges, creating persistent sell pressure that limits upside despite modest net outflows (~500 billion SHIB removed over 12 months). Price action shows repeated distribution — rebounds lack follow-through and selling volume spikes on declines. Separately, Ripple’s stablecoin RLUSD executed an on-chain burn on Dec. 19, sending 500,000 RLUSD to Ethereum’s null address (about $500,000), reducing circulating supply against an approximate 1.33 billion RLUSD supply and ~$1.33B market cap. The burn is auditable and notable given RLUSD’s active early trading (CoinMarketCap shows ~$107M 24h volume and a top-10 stablecoin ranking). Finally, Cardano founder Charles Hoskinson highlighted NIGHT, the native token of the privacy-focused Midnight network, which launched Dec. 8. CoinGecko reports a reported 24h trading volume surge (claimed here as roughly $4 billion), and NIGHT has out-traded XRP and SOL by volume in the short term. Hoskinson projects sharp increases in TVL and MAUs for Midnight, citing demand for private DeFi primitives. Key trading implications: SHIB faces strong structural sell-side resistance that may cap rallies and favor short-term bearishness; RLUSD’s burn is a modest but positive supply signal for that stablecoin; NIGHT’s explosive debut can drive short-term speculative flows into Cardano ecosystem tokens and peripheral markets.
Bearish
The combined news points to a short-term bearish bias for SHIB and a mixed but market-cautious outlook overall. SHIB: the large on-exchange reserve (~81.5T SHIB) represents a significant sell wall; historical patterns of distribution with high sell-volume spikes and weak rebound follow-through suggest rallies will be capped and volatility may favor downside or range-bound trading. This closely parallels past meme-coin episodes where high exchange reserves suppressed breakouts until substantial burns or demand shocks occurred. RLUSD burn: the 500k RLUSD removal is a positive supply-side signal but small relative to the ~1.33B supply; it is unlikely to produce major price moves for the stablecoin but improves tokenomics and may support confidence among holders. NIGHT/Cardano: NIGHT’s explosive listing and high short-term volume will likely draw speculative inflows into ADA-related markets and increase correlation/volatility across small-cap tokens. Historically, high-volume token launches lift associated ecosystem activity but often induce short-lived spikes followed by profit-taking. Net effect: traders should expect SHIB to remain range-bound or fall under sell-pressure absent a visible demand catalyst; RLUSD’s burn is neutral-to-mildly bullish for that peg’s perception; NIGHT-related flows are bullish for Cardano ecosystem in the very short term but add speculative risk. Tactical implications: consider avoiding long SHIB positions without clear on-chain demand reversal; monitor order book and exchange reserves for SHIB; treat RLUSD burn as minor positive for confidence in the stablecoin; watch NIGHT listings/liquidity for short-term alpha but manage stop-losses due to likely volatility.