Shiba Inu Faces Major Shift as 140B SHIB Exits Exchanges – What’s Next?

• Shiba Inu sees 140 billion SHIB exit exchanges, liquidity shifts.
• Exchange outflows suggest long-term holding, signaling a possible trend reversal.
• SHIB price stabilizes after sell-off, but market volatility lingers.

Recent on-chain data reveals a significant shift in Shiba Inu’s (SHIB) market activity. Over the past three days, approximately 140 billion SHIB tokens have been withdrawn from exchanges, marking one of the largest short-term outflows in recent weeks. This outflow trend is noteworthy as it signals that more tokens are being taken off exchanges than deposited, reducing the amount of SHIB available for immediate sale.

The negative netflow suggests that holders are increasingly moving their SHIB to private wallets or long-term storage, indicating a shift toward a more strategic, long-term approach. With fewer tokens available on exchanges, the immediate selling pressure could ease, which may help stabilize the price and potentially set the stage for future price recovery.

This outflow coincided with a price breakdown in SHIB, which recently fell to new local lows after consolidating for a brief period. Despite the sell-off, the price has since found some stability slightly above the $0.000006 region. Volume spikes during the decline suggest that weaker hands have been eliminated, while the subsequent cooling of volume hints that selling pressure may have softened.

Source: Tradingview

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Will the Outflows Lead to Accumulation or More Decline?

The continuous outflows from exchanges suggest that more SHIB holders are opting for long-term storage or staking, which means fewer tokens are available for quick sale. This reduction in circulating supply could potentially create a base for the price to consolidate and recover. However, this doesn’t guarantee an immediate recovery as the overall bearish trend remains intact. The key resistance levels are still sloping downward, making it hard for SHIB to regain its momentum.

The decrease in circulating SHIB could be seen as a positive sign for future price stabilization. Yet, in volatile market conditions like these, rallies often encounter strong resistance, and the risk of further declines remains. If inflows suddenly rise again, it could lead to renewed selling pressure, forcing SHIB to retest its recent lows.

As the outflows continue, the question remains whether this shift in market liquidity will be enough to spark a reversal in the trend. If the current support levels hold and selling pressure remains low, it could signal a potential accumulation phase for Shiba Inu. However, until there is more confirmation of a trend reversal, patience will be key for traders and investors watching the market.

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