[DigitalToday reporter Yesul Kim] An analysis said Shiba Inu (SHIB) could stage a surge of up to 700 percent with only $350 million in concentrated buying if exchange-side liquidity remains thin as it is now.

On July 2, local time, blockchain outlet U.Today reported that on-chain data put the value of Shiba Inu exchange reserves at about $374.3 million, with exchange holdings tallied at about 87.2002 trillion tokens.

The key is liquid supply that can immediately come to market, rather than market capitalisation. Shiba Inu saw very large price volatility in past speculative cycle phases, and the analysis said liquid supply piled up on exchanges is not large by this indicator based on that characteristic. It said Shiba Inu could undergo a "significant price revaluation" if demand of about $350 million flows in at once and thin exchange liquidity persists.

It also said in the memecoin market, the scale of capital inflows may not be proportional to the magnitude of price gains. That is because order-book depth, actual circulating supply, and fear and chase-buying psychology can act as bigger variables than market capitalisation. The analysis said in a thin-liquidity environment, aggressive buying can push prices up "much faster than traditional valuation logic."

Technical price action has not yet confirmed a shift to a bullish trend. Shiba Inu is trading near $0.00000433 on the daily chart and remains below key moving averages. With the 50-day, 100-day and 200-day moving averages all above the current price, the broader trend is still downward, it said.

In the short term, the $0.00000505 to $0.00000546 range was presented as the most important resistance. It is the area where Shiba Inu previously lost upside momentum, and the explanation said the "first meaningful signal" that buyers have regained control would be a break above that zone. A bigger resistance after that is near $0.00000651, where long-term moving averages sit. Until that level is reclaimed, it is hard to rule out the possibility that any rebound will be pushed back down again.

Supply-and-demand and network indicators were limited to a gradual improvement. Since the June decline, Shiba Inu has formed a small recovery structure, but trading volume has not yet shown a "meaningful accumulation wave," and the strength of the rebound was assessed as weak. On-chain flows were also mixed. Exchange inflows rose 0.41 percent and outflows increased 0.26 percent, while net inflows were tallied at -0.46 percent. Outflows slightly outpaced inflows, but it was not enough to be seen as a clear accumulation signal.

Network activity picked up slightly. Transaction count rose 0.5 percent and active addresses increased 0.61 percent. These figures, too, are closer to improved activity than a surge in demand. Shiba Inu currently has a structure in which prices can move sharply even on limited funds thanks to thin exchange liquidity, but an actual trend reversal would require confirmation of a resistance break and an expansion in trading volume, the outlet reported.