Latest on-chain data for Shiba Inu (SHIB) reveals a sharp increase in the volume of tokens transferred to exchanges, sparking worries of mounting sell pressure. This surge aligns with a recent spell of weaker momentum across the broader memecoin market, reflecting a clear drop-off in investor risk appetite.
Heavy SHIB flows heading to exchanges
In the last 24 hours alone, over 303 billion SHIB were moved onto exchanges. Notably, the ten largest wallets accounted for flows exceeding 6.1 billion tokens. Outflows from exchanges, on the other hand, have lagged behind these figures, pointing to a tendency among investors to liquidate their holdings.
The total dollar value of SHIB reserves held on exchanges slipped by 0.34% in the past day, amounting to an overall decline of more than 3% in recent weeks. This mirrors a simultaneous drop in both reserves and market price, reinforcing signs of ongoing weakness.
Market structure and trading signals
While the number of active wallets has inched slightly higher, this increase appears to stem more from internal transfers than fresh buying. Failing to propel key average price indicators higher, SHIB recently broke below its ascending wedge pattern. Its current price remains below the major 50-, 100-, and 200-day moving averages, further suggesting a market still dominated by sellers.
The Relative Strength Index (RSI) also failed to hold above the neutral 50 level, diving quickly and nearing the oversold zone. Combined with higher inflows to exchanges, this movement is widely interpreted as a signal of intensifying sell pressure, rather than renewed buyer interest.
Large investors shifting billions of SHIB to exchanges have left retail traders anxious, since such activity is often taken as a sign of preparation for distribution, according to market watchers.
Market sentiment and possible scenarios
Given how quickly market sentiment can flip in the memecoin space, experts point out that investors often shift to safer assets or fully close positions whenever price momentum fades. The trend of leveraged traders cutting risk exposure could trigger a fresh downward leg for SHIB if its price stays below key thresholds.
Still, analysts note that should exchange inflows slow down and the number of active addresses steadily rise, SHIB may be able to form a bottom near current levels. A major obstacle remains, however: Bitcoin and the broader crypto market have yet to show strong upward momentum, limiting recovery prospects for SHIB.
For now, on-chain indicators continue to highlight persistent pressure. Unless decisive buyer interest appears soon, high volatility is likely to persist across the entire memecoin sector in the near term.
