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Due to significant outflows from exchanges, which indicate that traders are either putting their holdings in cold storage or completely exiting positions, Shiba Inu is seeing a worrying contraction in liquidity. Over 142 billion SHIB tokens valued at millions of dollars have been removed from exchanges in the last 24 hours, according to on-chain data. Among market participants, this development raises both optimism and alarm as it represents one of the sharpest drops in liquidity in recent months.
SHIB issues aggravate
On the one hand, significant exchange outflows are usually regarded as bullish since they frequently suggest that investors are less inclined to sell in the near future. The amount of coins available for trading decreases when they are taken out of exchanges, which lessens selling pressure and might pave the way for a price recovery. The background is more complex in this instance, though.
As SHIB's price declines toward $0.0000119, a short-term low that continues to challenge investor confidence, there has also been a recent drain in liquidity. No concrete indication of a resurgence in demand from major buyers or institutions has been found despite the decreased supply on exchanges. Rather, the absence of active liquidity could lead to market fragility, where even mild sell-offs could cause inflated price fluctuations. Technically, the price structure of SHIB is still weak.
Shiba Inu volume declines
Key moving averages on the daily chart have not been regained by the token, and the declining trading volume indicates that participation is waning. With little indication that momentum is increasing in either direction, the RSI is still in neutral territory. Essentially the withdrawal of SHIB from exchanges may alleviate short-term selling pressure, but it does not always indicate a solid market base.
The token is at risk of becoming more volatile as a result of declining liquidity and a price that is only marginally above annual support. A precarious situation leading into Q4, 2025, Shiba Inu's declining exchange presence could portend instability rather than stability if demand does not pick up speed quickly.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team