Could rising Shiba Inu exchange outflows, including a 110B $SHIB withdrawal, ease selling pressure and help the token recover from its ongoing downturn?
Shiba Inu continues to struggle as broader weakness across the crypto market keeps the token under pressure. Notably, $SHIB fell to around $0.000004360, extending its decline to 2.3% over the past 24 hours and 3.4% over the past week.
The latest weakness has also put $SHIB’s position among the largest cryptos at risk. With a market cap of $2.57 billion, Shiba Inu currently ranks as the 30th-largest crypto asset. Meanwhile, Cronos, which ranks 31st, has a market value of about $2.25 billion.
As a result, another sustained decline in $SHIB’s market capitalization could increase the risk of the token losing its place among the top 30 cryptocurrencies.
Exchange Outflows Offer a Glimmer of Hope
Despite $SHIB’s bearish price action, recent exchange data offers a potentially encouraging signal for holders.
According to CryptoQuant data, the seven-day moving average of mean $SHIB exchange inflows has declined 11.05% to 1.22 billion tokens. At the same time, the seven-day moving average of mean exchange outflows has surged 195.56% to 920.34 million $SHIB.
This shift suggests that exchange activity is increasingly favoring withdrawals. However, the data does not yet indicate a complete reversal in exchange flows because average inflows remain higher than average outflows. Nevertheless, the sharp increase in withdrawals could gradually reduce the amount of $SHIB readily available on trading platforms.
Large Holders Move $SHIB Away From Exchanges
Activity involving larger transactions makes the latest trend even more notable.
CryptoQuant data shows that the top 10 exchange outflows reached 7.57 billion $SHIB, compared with about 5.97 billion $SHIB in inflows. Therefore, large transactions are currently favoring withdrawals over deposits.
Recent data has also pointed to 87 billion $SHIB leaving exchanges on a net basis. If this trend persists, declining exchange-held supply could eventually help ease short-term selling pressure.
The latest 24-hour figures further reinforce the outflow narrative. $SHIB withdrawals from exchanges climbed 2.52% to approximately 375 billion tokens. Meanwhile, withdrawals exceeded inflows by roughly 265 billion $SHIB, resulting in net outflows of about 110 billion tokens.
Can Outflows Stop $SHIB’s Decline?
The latest exchange data gives Shiba Inu investors a reason for cautious optimism. However, it does not guarantee an immediate price recovery.
$SHIB remains vulnerable to broader cryptocurrency market conditions and continues to trade near its recent lows around $0.0000042. Moreover, exchange outflows become significantly more bullish when they persist alongside stronger demand and improving market sentiment.
Meanwhile, other potential catalysts have weakened. $SHIB burns, for instance, have declined 18.95% over the past day to just 2.21 million tokens.
For now, however, the growing withdrawal trend provides an important counterpoint to $SHIB’s recent weakness. If billions of tokens continue leaving exchanges while selling pressure diminishes, Shiba Inu could gradually establish the conditions needed for stabilization.
Therefore, the latest outflows may not immediately stop $SHIB’s bleeding, but they could represent one of the first signs that selling pressure is beginning to weaken.
