Shiba Inu Shows Signs of Accumulation as Exchange Reserves Drop and Long Term Holders Remain Steady

What is driving Shiba Inu’s current on-chain accumulation?

Shiba Inu’s on-chain accumulation is driven by a significant drop in Age Consumed and a steady decline in exchange reserves. Long-term holders are not moving their tokens, and more SHIB is being withdrawn from exchanges, reducing immediate selling pressure and signaling potential for a price rebound.

How do exchange outflows impact SHIB’s price stability?

Exchange outflows indicate that investors are moving SHIB into self-custody, which typically reduces the available supply for sale on exchanges. This trend often precedes periods of price stabilization or gradual accumulation, as observed in recent SHIB activity according to official on-chain data.

Shiba Inu’s Dormant Tokens Reflect Holder Confidence

Recent on-chain analysis shows that SHIB’s Age Consumed metric has plummeted by 99.7% since mid-June, now at just 4.7 trillion. This sharp decline highlights that long-term holders are not selling, even during price rallies, reflecting growing confidence and conviction in the token’s future prospects.

Source: Santiment

Historically, spikes in Age Consumed have coincided with price peaks, but July’s inactivity among older wallets suggests that holders are waiting for a more favorable market environment. This behavior reduces the risk of large-scale sell-offs and supports price stability.

Exchange Outflows and Whale Activity Support Accumulation Trend

Between July 22 and July 25, SHIB’s exchange reserves dropped from 84.55 trillion to 84.35 trillion, a net outflow of 200 billion tokens. This movement, though modest, indicates that some investors are transferring SHIB off exchanges, likely into private wallets, which typically reduces short-term selling pressure.

Source: CryptoQuant

Recent whale activity, including a notable 2.58 billion SHIB accumulation, further reinforces the accumulation narrative. These trends, combined with reduced exchange reserves, may be setting the stage for SHIB’s next significant price move.

Momentum Indicators Show Cooling, But SHIB Maintains Support

After a brief rally above $0.000015, Shiba Inu experienced a pullback but has stabilized near $0.000014. The Relative Strength Index (RSI) is at 55.88, indicating neutral momentum, while the MACD shows a weakening bullish crossover, pointing to a slowdown in upward momentum.

Source: TradingView

Despite the cooling indicators, SHIB’s ability to hold above key support levels demonstrates market resilience. If buying interest returns, the memecoin could see renewed upward momentum.

Frequently Asked Questions

Why are Shiba Inu holders not selling despite recent price volatility?

Long-term SHIB holders are demonstrating strong conviction by keeping their tokens dormant, as shown by the sharp decline in Age Consumed. This reduces the risk of sudden sell-offs and supports price stability.

How do exchange outflows affect Shiba Inu’s price?

When SHIB is withdrawn from exchanges, it decreases the circulating supply available for immediate sale. This typically reduces sell pressure and can help stabilize or gradually increase the token’s price.

Key Takeaways

• Long-term holders are not selling: SHIB’s Age Consumed metric has dropped significantly, indicating conviction.
• Exchange reserves are declining: Investors are moving SHIB off exchanges, reducing sell pressure.
• Momentum is neutral but support holds: SHIB maintains key levels, setting up for a potential rebound if buying returns.

Conclusion

Shiba Inu’s on-chain data highlights a phase of accumulation, with long-term holders remaining steady and exchange reserves gradually declining. While momentum indicators have cooled, SHIB’s ability to hold above support levels signals resilience. If accumulation continues and buying pressure returns, SHIB could be poised for a new upward move in the near future.