Shiba Inu (SHIB): Enormous 289 Billion Drop Just Happened: What Does It Mean?

More than 289 billion Shiba Inu tokens left exchanges in a single day, indicating a significant on-chain shift on the market. This could indicate a reorganization of the market’s composition and possibly point to accumulation by long-term holders rather than panic-selling.

Rapid outflow

A net outflow of -289.7 billion SHIB, or about 1.45% of the total tracked supply, is shown by data from CryptoQuant, suggesting that tokens are being removed from centralized exchanges. Fewer tokens on exchanges translate into less immediate selling pressure, which can act as a basis for price stabilization. Generally speaking, this behavior indicates investor confidence.

Concurrently, the exchange reserves chart displays a precipitous drop in SHIB balances, which have fallen from approximately 85.5 trillion to 81.9 trillion tokens since early October. Concurrent with this trend, SHIB’s price experienced a sharp correction, dropping below the crucial $0.000010 level. But instead of mass liquidations, the data suggests redistribution, with tokens moving from exchanges to long-term or private storage, which may indicate investor resilience.

SHIB’s descending wedge 

Technically speaking, SHIB is still trading in a descending wedge pattern at about $0.0000100. Even though the coin is still struggling below the 200-day moving average (black line) at $0.0000130, it has found some tentative support just above $0.0000095, a level that has been tested several times this month. A short-term catalyst for a relief bounce could be the slightly oversold conditions indicated by the RSI, which is currently at about 37.

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However, the broader sentiment remains cautious due to SHIB’s failure to recover above significant resistance levels at $0.0000119 and $0.0000121. As long as stable support formation and on-chain accumulation persist, a recovery to $0.000011-$0.000012 is still conceivable. However, SHIB’s weaker support structure might be put to the test once more if momentum wanes.

Let’s put it this way: SHIB’s market composition is rapidly shifting, with more long-term positioning and less exposure to exchanges. The course of the upcoming sessions will determine whether that signals the beginning of a bullish base or merely short-term consolidation.