Shiba Inu Whales Move 1.04 Trillion SHIB to Exchanges in One Session

SHIB News

Shiba Inu (SHIB) faces renewed selling pressure after large holders moved 1.04 trillion tokens onto exchanges in a single session, the clearest near-term bearish signal for the meme coin. On-chain data shows the deposit ran roughly 6.5 times the prior day’s total, a sharp break from the gradual accumulation pattern of recent months. The flood of supply onto trading venues typically precedes distribution rather than holding, and it coincided with an 8% slide that dragged SHIB to $0.0000041 within 24 hours. For an altcoin already trading near multi-month lows, a deposit spike of this scale reads as conviction draining out of the holder base rather than fresh demand stepping in.

The price reaction underlined how thin support has become. Shiba Inu shed more than 8% over the day, settling at $0.0000041 as the exchange inflows hit order books. A move of that size in 24 hours is steep even by meme-coin standards, and it arrived without a corresponding catalyst on the demand side. Our reading of the flow is that the deposits front-ran the drop: tokens reaching exchanges in size are usually positioned to sell, and the timing left little doubt that holders were de-risking rather than rotating. The session erased the modest stability SHIB had clung to through the prior week.

Adding to the pressure, prominent leverage trader James Wynn publicly wrote off the project, calling it old, dead and boring and predicting it would never stage a real comeback. He argued the team executed a cash grab through BONE, the governance token for the project’s decentralized exchange ShibaSwap and the gas currency for Shibarium, Shiba Inu’s Ethereum Layer 2 network. Wynn suggested only nostalgia, five to ten years out, might briefly revive interest. Whatever the merits of the claim, the commentary landed on a day when sentiment was already fragile, amplifying a narrative that the ecosystem has lost the relevance it commanded during its 2021 peak.

The on-chain backdrop reinforces the cautious case. Exchange reserves snapped back to 80.5 trillion tokens in a single session, reversing months of steady outflows that had quietly removed supply from circulation. Falling reserves generally signal accumulation, as holders pull tokens into cold storage and off the market; a sudden surge in the opposite direction signals the reverse. The abruptness of this reset matters more than the absolute figure, because it overturned a trend that bulls had pointed to as evidence of patient long-term holders. Instead, the data now points to supply re-entering venues where it can be sold quickly.

The reversal landed on already fragile ground. This month’s price capitulation has left roughly 87% of SHIB holders sitting on unrealized losses, putting the bulk of the holder base underwater. When most wallets are in the red, the risk of cascading exits rises, because any relief bounce invites trapped holders to sell into strength to recover capital. That overhang acts as a structural ceiling on recovery attempts, since rallies meet supply from buyers eager to break even rather than fresh accumulation. It is the kind of distribution dynamic that can keep a token range-bound or grinding lower well after the initial shock fades.

Beyond the immediate flows, the episode feeds a longer-running question about whether SHIB can stay relevant as the meme-coin meta evolves. Wynn framed the sector as moving on to newer narratives, leaving older projects reliant on nostalgia rather than active development. Shiba Inu’s ecosystem still spans Shibarium and ShibaSwap, but the criticism centered on whether those products generate durable demand for the token itself. The combination of a development-team credibility attack, a reversal in long-term holder behavior, and a deeply underwater holder base presents a coherent bearish thesis that bulls will need new on-chain demand to refute.

From COINOTAG’s proprietary 42-indicator composite S/R scoring engine, the nearest support carries a composite score of 74/100 (strong), driven by the confluence of a Fibonacci retracement, the Donchian lower band and the prior-day low, with a secondary band rated 53/100. Overhead, our engine scores the first resistance at 70/100, built on a Fibonacci level, the Donchian upper band and a swing high. The 14-period RSI sits at 22.01, deep in oversold territory, while the perpetual funding rate of -0.0030% shows shorts paying longs — a positioning skew that can fuel a squeeze. With the bear market sentiment reflected in a Fear & Greed reading of 12 (Extreme Fear) and BTC dominance at 70.3%, a reclaim above the 70/100 resistance would invalidate the bearish thesis; losing the 74/100 support opens deeper downside.