SHIB Reserves Tumble, Investors Pull Billions from Exchanges

Centralized exchanges are witnessing a sharp decline in Shiba Inu (SHIB) reserves, sparking alarm among traders and analysts. According to CryptoQuant data, reserves have fallen to around 81.2 trillion SHIB, inching below the key 82 trillion threshold. The rapid outflow reflects a noticeable shift in how investors are positioning themselves around the meme-based cryptocurrency.

Over the last 24 hours, SHIB exchange netflows dropped by nearly 81.2 billion tokens. This indicates that more holders are pulling their coins out of exchanges than depositing them. Such a trend often points to accumulation or a growing preference for private storage. Yet, the timing is puzzling, as SHIB’s price continues to fall even while exchange balances decline.

Currently, SHIB trades near $0.0000096, down more than five percent in the past day. The price weakness, combined with reduced exchange liquidity, suggests uncertainty among traders. While some investors appear confident enough to hold their tokens off exchanges, others are exiting positions amid falling momentum and negative sentiment.

Investors Brace for More Volatility as Reserves Shrink

Technical indicators underline SHIB’s fragile state. The token has once again faced rejection at the 100- and 200-day moving averages, signaling continued resistance. Meanwhile, declining volume and a relative strength index below 40 reveal mounting bearish momentum across the market.

If reserves continue to fall below 81 trillion, the market could see even tighter liquidity. This might limit short-term trading opportunities but could also set the stage for a potential rebound if demand increases later. Reduced supply on exchanges often creates conditions for a future price recovery, though volatility tends to rise in the near term.

Historically, similar SHIB outflows have led to mixed outcomes—some marked the start of rallies, while others preceded deeper corrections. For now, the market remains divided, with holders torn between long-term confidence and short-term caution. As exchange reserves edge lower, Shiba Inu finds itself at a critical turning point that could define its next major price move.