- Shiba Inu supply on exchanges surges, intensifying persistent sell-side market pressure
- Rising exchange reserves weaken SHIB recovery hopes despite brief price rebounds
- Large SHIB inflows signal distribution phase as traders prepare exits
Shiba Inu is drawing renewed attention as exchange data shows a sharp buildup of tokens on centralized platforms, with more than 82 trillion SHIB now held on exchanges, intensifying concerns about sustained selling pressure. Rather than signaling confidence, the rising balance points to growing readiness among holders to sell, and consequently, the scale of available supply continues to weigh heavily on price performance.
Exchange reserves represent tokens positioned for immediate trading activity, and when these balances expand, they usually reflect distribution behavior instead of long-term accumulation, with SHIB’s trend remaining consistently upward.
Besides the size of the figure, the persistence of inflows stands out, as tokens have continued moving onto exchanges over time, suggesting structural rather than temporary pressure; hence, rallies face immediate resistance once prices attract demand.
Market structure mirrors this on-chain development, with SHIB struggling to maintain momentum above key technical levels, including the 100 EMA, while each recovery attempt meets renewed selling activity. Additionally, upside moves have remained shallow, as price rebounds tend to stall quickly, reinforcing the view that traders are using strength as an exit opportunity, a pattern common in extended distribution phases.
On-chain participation offers limited relief, since active addresses have shown mild growth while exchange reserves keep rising, and increased activity without outflows often reflects short-term trading rather than conviction.
Moreover, liquidity dynamics amplify the challenge because a large exchange-held supply creates constant overhead resistance, resulting in buyers struggling to absorb selling without triggering further declines.
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Source: Tradingview
Exchange Supply Continues to Cap Recovery Attempts
Surpassing the 82 trillion threshold marks a critical pressure point, as centralized exchanges now hold supply capable of suppressing sustained upside. Consequently, market sentiment remains fragile despite periods of short-term price stability.
For conditions to improve, exchange balances would need to decline steadily while price action stabilizes above major moving averages. However, neither signal has appeared convincingly in current market data.
Furthermore, market psychology plays a role, as rising reserves often shape expectations of further selling. This perception alone can limit fresh inflows and reinforce cautious positioning. While SHIB continues to attract attention within speculative trading circles, longer-term commitment appears limited, with activity centered on short-term moves rather than accumulation. Hence, volatility persists without clear directional strength.
From a broader view, meme-based assets rely heavily on sentiment alignment, and recoveries tend to fade when on-chain signals contradict optimism. SHIB currently reflects that imbalance in market behavior.
The buildup of over 82 trillion SHIB on centralized exchanges underscores ongoing distribution pressure, keeping the asset under sustained stress. Until balances contract and the technical structure improves, downside risks remain elevated.
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