Shiba Inu Faces Fresh Sell Pressure Fears

Shiba Inu ($SHIB) is facing renewed concerns over selling pressure after a sharp spike in exchange inflows on Monday reversed what had been a gradual and closely watched decline in available supply.

178 Billion SHIB Returns to Exchanges

About 178 billion SHIB flowed back onto exchanges, dealing a setback to Shiba Inu's most recent recovery attempt and raising concerns that selling pressure may continue to build. On-chain data confirms that exchange reserves climbed back above 80 trillion SHIB on Monday as inflows surged.

The timing matters. In the days leading up to the move, reserves had been edging closer to the 80 trillion mark from above, a level that carries significant weight for the token. On-chain data had placed SHIB exchange reserves at around 80.03 trillion tokens, a figure that has long served as a significant structural and psychological benchmark, with a drop below it set to represent a historic shift in the token's supply dynamics. A break below that level was seen by many as a potential long-term bullish catalyst, indicating that investors were moving tokens into self-custody and reducing liquid supply available for sale. Instead, that trend has been reversed by the latest wave of inflows.

High Inflows Signal Volatility, Not a Guaranteed Sell-Off

The return of 178 billion SHIB to exchanges increases the quantity of supply that is easily traded, but it does not automatically ensure a sell-off. Large exchange inflows have historically been associated with increased market volatility, profit-taking activity, or liquidation preparations.

The broader picture for $SHIB remains cautious. The most crucial support level sits at $0.0000053, close to the most recent support zone, and SHIB may experience additional downward pressure if sellers force a clear breakdown below this level. Rising exchange reserves, significant inflows, and a technical breakdown make it hard for bullish investors to ignore.

With 589 trillion tokens in circulation, even aggressive burns have a limited effect on scarcity, and recent data showing billions of SHIB moving to exchanges signals distribution intent. Whale sell-offs can quickly reverse rallies, adding another layer of risk for holders hoping for a near-term recovery.

For now, the 80 trillion SHIB exchange reserve level remains the key metric to watch. A sustained move back below it would indicate accumulation and reduced sell-side pressure. Until then, the latest inflow data keeps the near-term outlook tilted to the downside.

Sources:
U.Today: 178 Billion Shiba Inu Returned to Exchanges on Monday
CoinPaper: Shiba Inu Price Faces Uncertainty as Exchange Reserves Surge Past 80 Trillion SHIB
CoinMarketCap: Latest Shiba Inu News and Market Insights