Shiba Inu has recorded one of its largest short-term exchange outflows in recent weeks. Approximately 140 billion SHIB tokens left trading platforms over the past three days. The movement represents a significant shift in holder behavior.
Exchange netflow data shows a sharp negative trend. More tokens are exiting exchanges than entering. This pattern typically signals a move from active trading positions to long-term storage. Holders appear to be transferring assets to private wallets or staking platforms.
The reduction in exchange supply often correlates with a decrease in immediate selling pressure. Fewer tokens available on trading platforms can limit downward price momentum. However, the outflows come amid challenging market conditions for the meme coin.
Price Action Reflects Holder Transition
SHIB recently broke down from a short-term consolidation pattern. The breakdown pushed prices to new local lows. Following the steep decline, the token began stabilizing just above the $0.000006 level.
At the time of writing, Shiba Inu trades at around $0.000006372, suggesting a 6.47% increase in the last 24 hours.
Volume patterns during the sell-off suggest capitulation occurred. Sharp spikes accompanied the initial decline as weaker holders exited positions. Volume subsequently cooled as the price found support. This cooling indicates diminishing seller urgency.
The stabilization phase formed a narrow trading range. While not conclusive evidence of a reversal, it shows buyers stepping in at lower levels. The price action aligns with the timing of exchange outflows.
Current technical indicators remain bearish. SHIB trades below all major moving averages. These resistance levels continue pointing downward. The overall trend structure has not yet shifted to favor bulls.
What Exchange Outflows Signal
Removing tokens from exchanges serves multiple purposes. Some holders move assets to cold storage for security. Others transfer SHIB to staking platforms or decentralized finance protocols. Both actions reduce the readily available supply for trading.
This supply reduction does not guarantee immediate price recovery. It can, however, establish a foundation for stabilization. When selling pressure subsides and fewer tokens remain on exchanges, the market may find equilibrium.
Source: https://coinpaper.com/14602/shiba-inu-price-stabilizes-as-140-billion-tokens-leave-exchanges-in-three-days
