The Shiba Inu reserve is drying up on exchanges, with trillions withdrawn over a 24-hour period, sparking sentiments that a recovery could be imminent.
Recent on-chain data shows that over 8 trillion SHIB tokens left centralized exchanges in just 24 hours, indicating massive wallet activities. The move marked one of the most significant outflows in several months, reducing the asset’s available supply on trading platforms.
Dwindling Shiba Inu Exchange Supply Suggests Accumulation
Notably, such outflows from platforms could suggest that whales are accumulating Shiba Inu in staggering amounts. Specifically, large holders may be moving the token off exchanges into self-custody wallets, which indicates a long-term bullish stance towards the asset. It also removes near-term selling pressure, a move that would stabilize prices amid recent weakness.
However, not all withdrawals are whale accumulation. Some might also be strategic repositioning to other platforms for several purposes, such as OTC deals and participation in DeFi on decentralized platforms.
Remarkably, this trend of Shiba Inu withdrawal from exchanges has been a recurrent theme. Arkham data shows that a different singular wallet, “0x32285,” withdrew 2.2 trillion SHIB ($18.88 million) from Coinbase on December 9.
The whale carried out the withdrawal over six transactions of 570.3 billion, 584.6 billion, 406.7 billion, 11.7 billion, and 48.4 billion SHIB. At the time of writing, the address still holds the tokens.
Mixed Exchange Flows Amid Price Struggles
Remarkably, Shiba Inu has also recorded notable exchange inflows, passing mixed signals to holders. Santiment shared on December 9 that over 1.06 trillion SHIB tokens were added to exchange reserves, as whales move funds for possible sell-offs.
The shift aligned with increased whale activity on Shiba Inu, as transactions exceeding $100,000 reached 406, the largest since June 6th. Notably, the mixed flows to and from centralized exchanges show uncertainty among large holders even as the price struggles.
Meanwhile, SHIB trades at $0.00000833, down 3% over the past 24 hours. While it is down considerably in the last few weeks, it seems to have found support around the $0.0000080 region.
Analysts have highlighted key levels for Shiba Inu in both bullish and bearish cases. Further drops would see the token retest the weekly support at $0.0000060, while a recovery may see it cancel one zero and reclaim the $0.000010 levels.
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