Shiba Inu Price Set for Potential Supply Squeeze After 29 Million SHIB Withdrawals from Exchanges

In the past 24 hours, a significant 29 million Shiba Inu tokens (SHIB) have exited exchanges, indicating a quiet accumulation phase amidst market caution. As holders continue to withdraw tokens, this could set the stage for a potential supply squeeze.

Key Takeaways

Over 29 million SHIB have left exchanges in the last day, suggesting an accumulation phase.
The outflow of SHIB tokens is outpacing incoming deposits, pointing towards a preference for secure asset storage among holders.
Active addresses and network activity show signs of life within the Shiba Inu ecosystem, despite ongoing resistance in price.
The overall cryptocurrency market remains cautious, with major coins showing slight gains but still in "Fear" sentiment.

SHIB price and exchange outflows hint at supply squeeze.

Major Token Outflows Indicate Accumulation

According to The Crypto Basic, 29,169,846 SHIB tokens were withdrawn from centralized exchanges within a 24-hour period. KuCoin's latest update highlights a decrease in exchange reserves, dropping from 82,066,732,850,077 SHIB to 82,066,703,680,231 SHIB. Notably, about 256 billion SHIB flowed out, contrasted with approximately 183.5 billion SHIB flowing in, showcasing a clear trend where withdrawals greatly exceed deposits. This pattern suggests that holders prefer to secure their assets rather than sell them, which may decrease immediate selling pressure and pave the way for potential price increases if demand rises again.

Shiba Inu price eyes float squeeze as 29m SHIB exits exchanges in 24 hours - 1

On-Chain Activity Shows Signs of Life

Supporting the accumulation narrative, on-chain metrics reveal an uptick in active SHIB addresses by 0.83%, bringing the total to 195. Additionally, active receiving addresses increased by 1% to 131, with total transactions reaching 5,863. KuCoin describes these figures as indicative of increased activity within the Shiba Inu ecosystem, even though the price has not yet experienced a breakout. Currently, SHIB continues to struggle beneath key resistance levels, and technical analysis indicates that failure to reclaim its previous range could expose the token to a deeper correction if broader market conditions worsen.

Cryptocurrency Market Overview

The overall market context feeds into SHIB's performance. Bitcoin is hovering around $88,400, showing little change as it grapples with resistance below the $90,000 mark. Ethereum is trading near $2,911, having gained around 0.7% within the last day, with its price fluctuating within a range that tests support levels before rebounding. Other major cryptocurrencies, like XRP at approximately $1.885, BNB close to $883, and Solana around $123.65, have also reported minor gains of roughly 0.1–1.4% over the same timeframe.

KuCoin's daily market summary presents a cautious sentiment shift from "Extreme Fear" to simply "Fear," indicating that there hasn't been a notable increase in risk appetite for high-volatility assets. Against this backdrop, the recent withdrawals of SHIB into self-custody appear more as a disciplined accumulation strategy, as market participants await upcoming macro developments that could impact prices.