Shiba Inu (SHIB): Exchange Outflows Signal Accumulation and Reduced Selling Pressure

The Shiba Inu (SHIB) ecosystem has entered a critical juncture in late 2025, marked by a confluence of on-chain liquidity shifts and bear market exhaustion indicators. Recent data reveals a striking divergence between price action and underlying supply dynamics, with massive token outflows from exchanges suggesting a shift toward accumulation and long-term holding. While SHIB remains technically bearish, these developments hint at a potential inflection point in its trajectory.

Exchange Outflows and Accumulation Trends

Over the past month, SHIB has witnessed unprecedented outflows from centralized exchanges. According to on-chain analytics, 50 billion SHIB tokens left exchanges in a single day, with a cumulative total of 460 billion tokens exiting marketplaces over the past week. Such movements are typically interpreted as a reduction in liquid supply, as holders transfer assets to cold storage or self-custody wallets according to reports. This trend aligns with broader patterns observed in late 2025, where 125 billion SHIB tokens were withdrawn from exchanges, including a record 280 billion SHIB outflow in a single session.

These outflows are not merely speculative but reflect strategic accumulation. For instance, a 53.59 billion SHIB withdrawal from a long-dormant whale wallet on December 15 suggests institutional or high-net-worth participants are locking in supply. Analysts argue that such behavior reduces immediate selling pressure, as tokens are removed from active trading environments. While SHIB's price remains in a descending channel, the flattening of its decline and oversold momentum indicators signal a potential exhaustion of bearish selling.

Bear Market Exhaustion and Technical Indicators

SHIB's technical structure reveals a compressed phase near a potential reversal zone. The token is trading near its lower Bollinger Band and below the 20-day simple moving average (SMA), with Fibonacci retracement levels highlighting key resistance at $0.00000776 and support at $0.0000066. Despite repeated attempts to break above these levels, buyers have failed to materialize, and the RSI remains weak and flat, with declining volume underscoring waning demand.

However, signs of bear market exhaustion are emerging. Sellers appear to be losing urgency, as evidenced by decreasing volume on downward moves and a lack of sharp breakdowns. The price's inability to close above major moving averages has stabilized the gap between those averages and the current price, suggesting a potential retrace could neutralize bearish momentum. While SHIB remains in a downtrend, the absence of further price compression and oversold momentum indicators point to a possible base formation.

Broader Market Context and Catalysts

The broader macroeconomic environment has exacerbated SHIB's challenges. With inflation persisting above the Federal Reserve's target and retail liquidity constrained, speculative activity in risk assets like SHIB has waned. Financial stress among retail investors has further suppressed buying interest, compounding the token's bearish bias. Yet, the on-chain data tells a different story: reduced exchange supply could limit downside potential while amplifying upside risk if demand begins to outpace the diminished supply.

A reversal would require external catalysts, such as broader market strength or a surge in SHIB-specific utility. For now, the token remains trapped in a downward price channel, with every bounce met by fresh selling pressure. However, if SHIB manages to close above the 20-day SMA and sustain it for several sessions, it could target $0.0000088 or even $0.0000095 according to technical analysis.

Conclusion

Shiba Inu's on-chain liquidity shifts and bear market exhaustion indicators present a nuanced picture. While the token's technical and macroeconomic fundamentals remain bearish, the accumulation trends and reduced exchange supply suggest a potential inflection point. Investors should monitor key resistance levels and on-chain metrics for signs of a breakout, but caution is warranted until broader market conditions improve. For now, SHIB's journey remains a test of patience, with the path forward dependent on whether demand can outpace the lingering shadows of 2025's bearish narrative.