On-chain data for Shiba Inu reveals a notable shift in supply dynamics that could impact the broader market. According to the latest figures, the amount of SHIB held in exchange wallets has dropped to around 80.03 trillion tokens, edging closer to the closely watched psychological barrier of 80 trillion.
Supply on exchanges keeps shrinking
Exchange reserves represent the quantity of an asset that is immediately available for trading or rapid sale on the market. A decline in these reserves often suggests that investors are moving their tokens off exchanges, opting instead for long-term storage solutions, private wallets, or alternative investment avenues. In the case of SHIB, the ongoing drop in exchange balances marks one of the lowest levels in recent years, following a prolonged pattern of gradual redistribution.
Mini glossary: Netflow indicates the difference between tokens entering and leaving exchanges. Negative netflow means more tokens are withdrawn than deposited, indicating an outflow from trading platforms.
The most up-to-date statistics show that SHIB exchange reserves declined by another 0.06% over the past 24 hours. Although the percentage appears modest, such shifts become significant when dealing with volumes measured in trillions. Additionally, the net exchange flow stood at approximately minus 51.47 billion SHIB, underscoring that tokens are still leaving exchanges at a greater rate than they are entering.
The ongoing decrease in exchange reserves signals that less SHIB is primed for quick sale in the market, while netflow data confirms the continued exodus of tokens from exchanges.
Technical indicators hint at oversold territory
From a price perspective, SHIB continues to exhibit a fragile outlook. After slipping below the rising channel pattern established since March, the token lost its support at the $0.0000055 level, retreating further toward $0.0000045. SHIB prices remain beneath the 50, 100, and 200-day moving averages, suggesting that the overall trend remains weak.
Nonetheless, certain momentum signals have attracted attention. The Relative Strength Index (RSI) has dipped to around 25, entering the oversold zone. Historically, such low RSI values in SHIB have sometimes preceded brief recovery rallies.
Despite a weakened technical outlook, the alignment of oversold indicators with shrinking exchange supplies stands out as a key trend observed in SHIB at present.
Crossing below 80 trillion may shift market balance
If SHIB reserves on exchanges fall below the 80 trillion mark, the immediately tradable supply will decrease further. While this contraction does not automatically spark a price increase, it is considered one factor that could reduce selling pressure on the market. The ongoing outflow also suggests a change in investor behavior, favoring holding over short-term selling.
Shiba Inu, developed on the Ethereum network and known for its energized community, has distinguished itself as a leading meme coin. Although price charts remain subdued for now, on-chain data indicates tightening supply dynamics. As a result, market observers are closely watching whether exchange reserves will breach the 80 trillion threshold.
