8,000,000,000,000 Shiba Inu (SHIB) Erased From Exchanges: What’s Going On?

More than eight trillion SHIB left centralized exchanges in a 24-hour period, making it one of the biggest single-day exchange outflow events in months. When that volume of liquidity leaves exchanges, it typically indicates one of two things: either large holders’ strategic repositioning, or accumulation. The first option is much more likely given SHIB’s recent actions.

Shiba Inu remains trapped

With the 200-day MA serving as a distinct ceiling that the price has repeatedly failed to break, SHIB is still trapped beneath its longer-term moving averages on the chart. The RSI continues to hover in the mid-40s, volume is erratic and decreasing, and momentum is weak, all of which are classic indicators that the market has not yet found strong directional conviction.

Nevertheless, rather than continuing to bleed out, the price is stabilizing above local lows, creating a short-term consolidation range. That alone indicates that the negative is being mitigated.

When you combine this with the eight trillion SHIB outflow, the story becomes more apparent. In order to lessen sell-side pressure, large holders withdraw liquidity from exchanges when they intend to hold, stake, deploy into DeFi, or just take tokens out of circulation.

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Another layer is that SHIB has recently seen alternating spikes in inflow and outflow, indicating uncertainty among smaller traders, while whales behave more surgically. A weeks’ worth of cumulative exchange liquidity for SHIB is essentially erased by such a large outflow. This lessens the quantity that can be sold on the market during periods of volatility, which usually raises the amplitude of subsequent movements, whether they are upward or downward.

Despite weak technicals, there has not been any significant selling, so upward is still more likely. Increased volatility, delayed but strengthening accumulation trends, and the possibility of a medium-term base developing below the current price are what investors should anticipate next.