Shiba Inu Price Faces Selling Pressure After Exchange Inflows

Shiba Inu (SHIB) is facing renewed selling pressure as more than 112 billion tokens were transferred to centralized exchanges in a single 24-hour window, pushing total exchange reserves above 80.63 trillion SHIB [2]. This surge in exchange-held supply signals a potential shift in sentiment among large holders, or "whales," who appear to be repositioning their holdings as the asset struggles to sustain a recent price bounce [2].

Rising exchange supply and market impact

The movement of 112 billion SHIB onto exchanges represents a 0.14% single-day increase in total exchange reserves [2]. In the context of the asset's circulating supply, analysts view this as a significant indicator of increased sell-side pressure [2]. When large volumes of tokens move to centralized exchanges, it typically suggests that holders are preparing to liquidate or restructure their positions, which creates a supply-demand imbalance that can weigh on prices [2].

This influx coincides with a period of technical uncertainty for the token. While SHIB recently broke out of a short-term declining structure, the price remains below the 26-day exponential moving average (EMA), a key level that traders often use to confirm a trend reversal [2]. Without a sustained close above this moving average, the current price action is viewed by some as a relief rally within a broader bearish trend rather than a definitive recovery [2].

Divergent on-chain signals

Market data shows conflicting signals regarding SHIB’s momentum. While some reports indicate that exchange netflows have spiked by as much as 6.23% in a single day—with one tracking service noting a net inflow of over 356 billion tokens—the impact on price remains volatile [3]. Other reports have tracked even larger movements, with nearly 800 billion SHIB reaching exchanges in a single day, which coincided with a drop to price levels not seen since early June [4].

These movements are occurring alongside fluctuations in the token's burn rate, which saw a 56% increase over a 24-hour period [4]. Despite this, the broader weekly burn activity remains in decline, and the market has yet to see if these burns can offset the increased sell-side supply currently sitting on exchanges [4].

What to watch

• The 26-day EMA: Monitor whether SHIB can achieve a sustained daily close above this moving average, which remains the primary hurdle for bulls to confirm a trend reversal [2].
• Exchange Reserve Trends: Watch for further spikes in exchange inflows, which would indicate that whales are continuing to move supply to exchanges for potential liquidation [2].
• Support Levels: Observe price action near the $0.00000456 level, which served as a recent floor for the asset during the latest period of heavy selling pressure [4].

Whether the current price level holds depends on whether market demand can absorb the incoming supply from these large-scale transfers. Until the exchange reserve balance stabilizes, the asset remains vulnerable to further downward pressure from holders looking to exit positions.