Shiba Inu Price Under Pressure as Negative Netflows Signal Potential Further Decline

• Negative netflows signal low interest: Over 11.7 trillion SHIB left exchanges on October 30, per CryptoQuant data, amid falling trading volume.

• Price trapped in descending channel: SHIB trades close to $0.0000101, pressured by 200-day moving average and resistance levels.

• RSI indicates weakness: The relative strength index remains around 40, showing lack of momentum and ongoing bearish trend with 65.9 billion tokens purged from supply.

Discover why Shiba Inu demand is fading despite massive token burns, with SHIB price at risk of another zero. Stay informed on crypto trends and protect your investments today.

What is Causing Shiba Inu Tokens to Exit the Market?

Shiba Inu (SHIB) tokens are exiting the market primarily through burns and large-scale withdrawals, reducing the circulating supply by over 65.9 billion tokens. This process aims to increase scarcity, but it has not translated into rising prices or renewed investor interest. Instead, the token’s value remains stagnant, trading perilously close to $0.0000101, as market participants show eroding confidence amid persistent outflows.

How Are Negative Netflows Impacting SHIB’s Performance?

Shiba Inu’s exchange netflows have turned sharply negative, with data from CryptoQuant revealing over 11.7 trillion SHIB tokens withdrawn from exchanges on October 30. While such outflows often signal accumulation by long-term holders in other assets, for SHIB, they coincide with plummeting trading volumes and declining investor participation. This suggests disinterest rather than strategic buying, as fewer traders engage with the token.

The broader market context exacerbates this issue. SHIB’s daily chart shows it confined within a wide descending channel, with the 200-day moving average acting as a significant overhead resistance. Currently priced at approximately $0.0000101, the token exhibits no clear reversal patterns. The relative strength index (RSI) lingers around the 40 level, a zone that typically indicates neither strong buying nor selling pressure but underscores overall weakness and a lack of momentum.

Experts note that without consistent inflows, these supply reductions fail to support price stability. For instance, cryptocurrency analyst Ali Martinez has observed in past analyses that meme coins like SHIB require sustained community-driven demand to thrive, a factor currently absent. Data from on-chain metrics further supports this, showing reduced wallet activity and holder metrics that point to waning enthusiasm.

In practical terms, if the rising support line near $0.0000095 gives way, SHIB could swiftly decline toward $0.000008, confirming a deeper correction. This scenario would represent another significant drop, potentially adding to the token’s historical volatility. The combination of burns—intended to deflate supply—and withdrawals highlights a paradoxical situation: efforts to bolster value are undermined by fundamental demand shortages.

Looking at historical precedents, similar patterns in 2022 saw SHIB endure prolonged downturns despite aggressive burn initiatives. Blockchain explorers like Etherscan confirm the scale of these burns, with dedicated funds removing tokens from circulation quarterly. However, without corresponding market adoption or utility developments, such measures remain insufficient to reverse bearish trends.

Shiba Inu’s ecosystem, built around its meme-inspired origins, relies heavily on retail investor sentiment. Recent surveys by platforms like CoinMarketCap indicate that only 25% of polled holders view SHIB as a long-term hold, down from 40% earlier in the year. This shift in perception, coupled with macroeconomic pressures on risk assets, contributes to the ongoing exodus.

To mitigate these impacts, community leaders have pushed for ecosystem expansions, such as integrations with decentralized finance (DeFi) protocols. Yet, transaction volumes on Shibarium, SHIB’s layer-2 solution, have not surged enough to offset exchange outflows. Analysts from Glassnode report that active addresses for SHIB have decreased by 15% month-over-month, reinforcing the narrative of diminishing engagement.

In summary, negative netflows are not just a symptom but a driver of SHIB’s subdued performance, highlighting the need for genuine demand catalysts beyond supply manipulation.

SHIB/USDT Chart by TradingView

The chart illustrates SHIB’s precarious position, with the descending channel and moving averages clearly visible, underscoring the technical barriers to recovery. As trading continues in this environment, investors must monitor volume indicators closely for any shift in sentiment.

Beyond technicals, fundamental factors play a role. Shiba Inu’s development team has emphasized burns as a core strategy, with over 410 trillion tokens burned since inception, according to official tallies. However, the recent 65.9 billion token reduction—encompassing both burns and off-exchange transfers—has not sparked the anticipated rally. Market reports from Bloomberg highlight how investor fatigue in the meme coin sector has led to capital rotation toward more established assets like Bitcoin and Ethereum.

Regulatory scrutiny adds another layer. While not directly targeting SHIB, increased oversight on speculative tokens by bodies like the U.S. Securities and Exchange Commission (SEC) has cooled enthusiasm. This has prompted cautious behavior among exchanges, limiting promotional activities that once fueled SHIB’s hype cycles.

From a risk management perspective, portfolio diversification remains key. Financial advisors recommend allocating no more than 5% to high-volatility assets like SHIB, especially during periods of negative netflows. Tools like portfolio trackers from Messari can help monitor such metrics in real-time.

The interplay between supply dynamics and demand voids creates a challenging landscape for SHIB holders. As the token navigates this phase, external events—such as broader crypto market recoveries—could provide relief, but current indicators suggest caution prevails.

Frequently Asked Questions

What Does It Mean for SHIB If Billions of Tokens Are Burned?

Burning SHIB tokens permanently removes them from circulation, aiming to reduce supply and potentially increase value through scarcity. Over 65.9 billion tokens have been burned or withdrawn recently, per on-chain data, but without rising demand, this has not prevented price stagnation near $0.0000101. It signals community efforts to support the ecosystem, yet sustained buying is essential for positive impact.

Why Is Shiba Inu Trading Volume Declining Amid Outflows?

Shiba Inu’s trading volume is declining because investor participation has waned, with negative netflows of 11.7 trillion tokens on October 30 reflecting disinterest rather than accumulation, as reported by CryptoQuant. This occurs alongside lower active addresses and reduced hype, making the token less appealing for short-term trades. In simple terms, fewer people are buying or selling SHIB, leading to quieter markets and potential price vulnerability.

Key Takeaways

• Massive Token Exits Without Demand Boost: Over 65.9 billion SHIB removed from circulation, but eroding confidence keeps prices low.
• Technical Weakness Persists: Descending channel and RSI around 40 indicate no reversal, with support at $0.0000095 at risk.
• Monitor for Broader Catalysts: Investors should watch for demand recovery or market-wide uptrends to avoid further declines toward $0.000008.

Conclusion

In the evolving landscape of Shiba Inu (SHIB), the exodus of billions of tokens through burns and withdrawals underscores a critical lack of demand, with the price teetering near $0.0000101 amid negative netflows and technical pressures. As data from sources like CryptoQuant illustrates, these dynamics point to ongoing challenges for the meme coin. Looking ahead, revitalizing investor interest through ecosystem growth could pave the way for recovery—consider evaluating your holdings and staying updated on crypto developments to navigate this volatile space effectively.