Large holders seem to be shifting significant amounts of SHIB toward exchanges despite a dramatic recovery from recent lows, which could lead to new selling pressure as the market tries to stabilize. Over 4 billion SHIB entered exchanges during the previous day, according to recent on-chain data.
Liquidity stays relevant
These inflows frequently indicate that big investors are preparing liquidity for possible exits, even though they do not always result in quick sales. This behavior may suppress price action in a market that is already having difficulty regaining momentum.
The timing is especially significant. A recent capitulation event in SHIB caused the token to drop to its lowest point in months. The asset fell below a rising wedge structure that had sustained prices for the majority of the spring due to heavy selling. Before buyers eventually intervened near the $0.0000045 area, the breakdown caused a wave of liquidations.
Since then, SHIB has been able to partially recoup its losses. The Relative Strength Index has sharply recovered from oversold territory, and the asset is moving back toward the 50-day moving average. Speculative traders seeking a short-term reversal are frequently drawn to such recoveries.
Inflows cool SHIB off
Whale inflows, however, complicate matters. During a recovery effort, large holders effectively increase available supply by transferring assets onto exchanges. By absorbing buying pressure, this extra supply can prevent the price from developing a more robust bullish trend. For SHIB, which stays below its 50-, 100-, and 200-day moving averages, this is particularly crucial. Despite the recent uptick, bears are still favored by the overall market structure.
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A cautious outlook is also supported by volume data. The intensity of the selling volume that accompanied the recent breakdown has not yet been matched by the buying activity that increased during the rebound. Buyers must recover resistance levels near the 50-day and 100-day moving averages if SHIB is to break free from its current bearish structure. It may become even more challenging to get past those resistance zones if whale inflows remain high.
Demand is still present, as evidenced by the recent rebound, but large holders seem to be making it clear that they are not yet prepared to support a prolonged breakout. The recovery of SHIB is still susceptible to fresh selling pressure until exchange inflows start to drop.
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