While Shiba Inu drifted sideways on thinning volume, whale wallets quietly withdrew trillions of tokens from exchanges. That shift hinted at a supply-side change the market had not fully priced.
According to CryptoQuant’s Exchange Reserve data, SHIB’s on-exchange supply declined sharply over recent months.
Between June 2025 and early December, Exchange Reserves fell from above 88 trillion to near 81 trillion SHIB.
Source: CryptoQuant
That decline suggested sustained off-exchange withdrawals, typically associated with long-term holding behavior.
During the same period, Shiba Inu’s [SHIB] price trended lower, slipping from above $0.000013 toward the $0.000008 region.
However, conditions shifted after the 5th of December.
Exchange Reserves stabilized and later ticked higher, rising from roughly 81 trillion to about 82 trillion SHIB. That move pointed to renewed inflows, implying some holders repositioned toward liquidity rather than cold storage.
As a result, selling pressure eased, but upside momentum remained capped.
In the short term, higher reserves reduced squeeze risk and reinforced range-bound price action between $0.000008 and $0.000009.
Even so, a return to a supply-driven bullish structure would likely require fresh outflows, stronger demand, or broader market recovery.
SHIB holds support but lacks momentum for a breakout
SHIB remained in a consolidation phase through late December and early January.
Price traded sideways within the $0.0000083–$0.0000089 range, reflecting indecision among traders. At press time, SHIB changed hands near $0.0000086, showing limited follow-through after a modest bounce.
Exchange Reserve data added context to that stagnation.
Source: TradingView
Earlier outflows had signaled aggressive accumulation, but recent inflows restored available supply. That shift kept upside attempts constrained.
On the technical side, volume remained subdued, and the Relative Strength Index hovered near neutral levels.
Together, those signals suggested fading momentum and a preference for range trading.
For bulls, renewed exchange outflows paired with stronger volume could open a move toward $0.0000095, with $0.00001 as an extension. On the downside, continued inflows and broader weakness risked a break below $0.0000083, exposing $0.0000078.
Until supply tightened again, consolidation appeared likely.
Whale activity rises, supply keeps control
Demand showed tentative improvement, but conviction stayed limited.
Santiment data showed whale transactions in SHIB rose 111%, signaling renewed positioning by large holders. However, that increase failed to translate into sustained directional price movement.
At the same time, Exchange Reserves climbed toward 82 trillion SHIB, hinting at distribution pressure.
Source: Santiment
That balance left the market fragile.
With large wallets controlling a significant share of supply, small shifts in behavior continued to amplify volatility.
For now, the setup favored chop over trend. A decisive breakout would likely require sustained whale accumulation, falling Exchange Reserves, and expanding volume.
Final Thoughts
- SHIB remains stuck in consolidation as rising whale activity fails to overpower renewed exchange inflows and thin volume, keeping price range-bound.
- A decisive move will depend on sustained supply tightening and stronger volume, while continued inflows risk extending chop or pushing price lower.
