The Shiba Inu (SHIB) token witnessed a dramatic 65% decline in daily exchange outflows over the past 24 hours, a sudden drop that could signal weakening accumulation momentum. On-chain data shows that while netflows remain negative—meaning more SHIB is still leaving exchanges than entering—the pace of withdrawals has decelerated sharply. Negative netflows are generally considered a bullish indicator, as they imply investors are moving tokens into self-custody, reducing immediate selling supply. However, the steep fall in outflows suggests that the rate of this accumulation is fading.
Long-term trends for SHIB exchange reserves continue to point lower, a dynamic that has supported the asset for months. The USD value of those reserves has also been softening. Yet, market participants often pay close attention to the change in metrics rather than just their absolute direction. A 65% one-day plunge in outflows, compared to recent sessions, hints that large holders and active traders may be less eager to move tokens off trading platforms. This loss of withdrawal intensity could undercut the support that had been building.
Transaction activity on the network remains stable, indicating no broad decline in usage. Nevertheless, if exchange outflows do not recover in the coming days, SHIB may struggle to generate the buying pressure needed for a sustained upward move—especially as volatility returns to the broader cryptocurrency market. The current picture is mixed: overall negative netflows still favor the bulls, but the sudden slowdown in withdrawals serves as a cautionary sign that accumulation appetite might be waning.
