Shiba Inu, a popular meme-based cryptocurrency, is experiencing heightened selling pressure as the available token supply on exchanges has risen to 86 trillion units. This increase follows the removal of the previously watched 85 trillion threshold and has deepened the asset’s recent downturn.
On-chain metrics signal sustained sell pressure
Recent blockchain data points to a significant rise in selling activity. Exchange inflow metrics for Shiba Inu have reported a 606% jump on the seven-day moving average, marking a sharp acceleration in the supply being deposited onto trading platforms. All related inflow indicators are showing strong inflows, which typically foreshadow incoming sell orders by investors transferring their holdings back onto exchanges.
Netflow data, which tracks the overall movement of SHIB tokens to and from exchanges, shows a positive balance of 42 billion SHIB over the latest 24-hour period. Positive netflow generally indicates that more tokens are entering exchanges than leaving, reflecting bearish sentiment and suggesting that further selling may continue in the near term.
Mini dictionary: Netflow refers to the total inflow minus the total outflow of tokens on exchanges. A positive netflow means more tokens are being deposited than withdrawn, often preceding price drops due to increased selling potential.
Historically, Shiba Inu’s supply has been concentrated heavily on centralized exchanges. Past rallies since 2023 have also been accompanied by surges in both inflows and subsequent sell-side volumes, making these metrics closely watched by traders and analysts.
Technical factors worsen bearish outlook
Shiba Inu has struggled to stabilize since early October. The asset’s price has dropped by more than 28% during this period, amplifying concerns about the outlook. As exchange inflows continue to rise, the additional supply on platforms could contribute to further downward price momentum.
Market sentiment remains subdued amid broader concerns in the cryptocurrency industry, including recent security incidents and illicit activities. These issues have added to the negative tone surrounding Shiba Inu and digital assets in general.
Market analysts point to negative sentiment, ongoing selling pressure, and consistent technical weakness as main contributors to Shiba Inu’s declining price trends.
Key technical indicators are reinforcing the bearish momentum. The Relative Strength Index (RSI), a commonly used measure of market momentum, is currently hovering near the 30 mark and moving sideways. This reading is typically interpreted as a sign of continued weakness, with few indications of near-term recovery.
Trading volume for Shiba Inu remains flat, which reflects steady selling pressure rather than a sharp increase in trading activity. At the same time, liquidity clusters—areas of significant buy and sell orders—are set at price points below current levels, increasing the risk for further losses if the price drops toward these zones.
| Metric | Current Value | Change | Sentiment |
|---|---|---|---|
| Exchange supply | 86 trillion SHIB | +1 trillion SHIB | Bearish |
| Netflow (24h) | 42 billion SHIB | Positive | Bearish |
| Exchange inflow (7d MA) | 606% increase | Substantial | Bearish |
| SHIB price (since Oct) | -28% | Decline | Bearish |
| RSI | Around 30 | Sideways | Bearish |
Outlook remains uncertain for recovery
Analysts are watching closely to see whether increased exchange activity will translate into additional selling or if buyers can absorb the sudden jump in available supply. For now, the indicators remain negative, and there does not appear to be an immediate catalyst for a rebound in Shiba Inu’s market position.
