Sellers Deposit 357B SHIB onto Exchanges
Shiba Inu holders are moving to liquidate their positions, creating significant headwinds for the token. On-chain data from March 25 shows a net inflow of 356.8 billion SHIB tokens onto trading platforms, marking a 6.23% surge in exchange netflow. This positive netflow indicates that the volume of tokens being sent to exchanges for sale far outweighs tokens being moved into private wallets for holding. The activity suggests a risk-off sentiment is taking hold among SHIB investors, driven partly by broader market uncertainty stemming from the U.S.-Iran conflict.
Price Stalls Below Resistance as Reserves Swell to 81T
The flood of tokens onto exchanges is compounding bearish technical signals. Total SHIB reserves held on exchanges are once again approaching the 81 trillion mark, a level seen just before the last major price decline. This build-up of sell-side liquidity comes as SHIB's price struggles to gain momentum, trading at approximately $0.000006175. The price remains firmly below its 50-day exponential moving average (EMA), which is acting as a strong resistance ceiling. The combination of rising available supply and a failure to break key technical levels strengthens the case for a potential move to the downside.
Shibarium's 300% Transaction Spike Masks Weakness
While some on-chain metrics appear positive, they fail to mask the underlying market weakness. Shiba Inu’s layer-2 network, Shibarium, recently posted a 300% surge in daily transactions. However, a closer look reveals this activity is dominated by zero-value contract calls related to infrastructure processes, not genuine economic transfers between users. This spike in automated activity does not translate to increased demand or liquidity for the SHIB token itself. The contrast between this superficial network activity and the substantial, value-backed token flows into exchanges provides a clearer picture of the bearish sentiment currently controlling the market.
