-272,933,000,000 Shiba Inu (SHIB) in 24 Hours: Why Isn’t It Growing?

Shiba Inu is being actively moved from exchanges, and this time, on-chain data supports what the charts have been indicating for weeks: a steady drop in liquidity inflows and investor confidence.

In just the last day, Shiba Inu reported an -272.9 billion SHIB net outflow across all exchanges, according to CryptoQuant. Although price action suggests otherwise, this figure technically shows tokens moving off exchanges, which is frequently interpreted as a bullish sign.

Shiba Inu’s price performance

The price of SHIB is still declining despite what may appear to be accumulation, and it is currently at $0.0000090, its lowest point since early 2024. The discrepancy between outflows and price indicates that holders’ redistribution, or dormant wallet consolidations, may be the cause of these movements rather than conviction buying. To put it another way, whales might just be transferring assets for storage or hedging against general market weakness rather than accumulating.

Technically speaking, the SHIB/USDT chart is still very pessimistic. The asset has now confirmed another downward continuation by breaking below its short-term ascending support line. As a long-term resistance barrier, the 200-day moving average keeps sloping lower, above current price levels. RSI and other momentum indicators are close to 33, indicating low demand and the potential for more sell-offs prior to any significant rebound.

Capital rotation

At this point, Shiba Inu’s inability to expand in spite of significant exchange outflows highlights a crucial fact: outflows by themselves do not indicate bullishness in the absence of a commensurate increase in demand or capital rotation into the asset.

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With $0.0000080 now emerging as the next crucial level to watch, the token may continue to be stuck in its gradual decline unless overall market liquidity improves or SHIB finds a new narrative catalyst. As of right now, sentiment regarding SHIB is still precarious, and a recovery appears increasingly unlikely in the near future in the absence of improved fundamentals or speculative interest.