- 332 billion SHIB moved to exchanges as selling pressure continued
- Expert warns weak demand may push Shiba Inu toward lower price levels
- On-chain data shows cautious investors avoiding accumulation amid volatility
Shiba Inu remained under pressure as an expert pointed to rising risks from heavy exchange inflows following fresh on-chain data showing a sharp increase in SHIB deposits. Market behavior indicated that traders continued to favor selling during the ongoing correction, as recent exchange data revealed a notable jump in deposited tokens within 24 hours.
Metrics from CryptoQuant showed net inflows rising nearly four percent, with the movement totaling about 332.5 billion SHIB, a trend that signaled growing sell-side pressure across major platforms.
Meanwhile, Shiba Inu traded near the 0.0000063 level, matching prices last seen in mid-2023, while recording an additional daily decline close to six percent that deepened bearish sentiment among short-term traders. An expert tracking meme token flows warned that persistent exchange inflows often increase downside risk, noting that investors appeared focused on capital protection as limited spot demand further weakened price stability during brief rebounds.
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Exchange inflows reflect cautious investor behavior
On-chain activity showed limited accumulation from larger wallets, as movements instead reflected steady transfers toward exchanges, while spot trading volumes remained muted during attempted recoveries, pointing to fragile confidence across market participants.
Significantly, the current decline marked Shiba Inu’s sharpest correction this year and erased gains built over months of gradual recovery, which consequently slowed retail entries and kept institutional participation minimal during the downturn.
Wider crypto market uncertainty continued to weigh on speculative assets, as Bitcoin and Ethereum showed signs of stability while risk appetite remained selective across altcoins, leaving meme tokens exposed to disproportionate selling pressure. Additionally, traders reduced leverage exposure in derivatives markets, signaling defensive positioning amid ongoing volatility, as liquidity preference increased and investors avoided extended risk exposure.
Psychological levels heighten downside concerns
The expert highlighted psychological pressure around key price thresholds, noting that lower decimal levels could weaken sentiment further. This shift may discourage dip buying and prolong consolidation phases, while recovery would require sustained exchange outflows.
Despite the decline, selling activity remained orderly and showed no signs of panic-driven liquidations. However, continued inflows may limit upside attempts during near-term trading. Shiba Inu remained under pressure as the expert warned of downside risks tied to heavy exchange inflows. The transfer of 332 billion SHIB to exchanges underscored persistent selling interest. Without a clear shift in flows and renewed demand, the token may struggle to avoid adding another zero.
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