Shiba Inu Net Inflows Drop to Zero as Extreme Volatility Signals Put Whales on High Alert

▲ Shiba Inu (SHIB) / ChatGPT-generated image

As exchange inflows and outflows within the Shiba Inu (SHIB) ecosystem have reached a perfect balance, resulting in net inflows dropping to zero, the market is facing a critical juncture that could maximize future price volatility.

According to cryptocurrency media outlet U.Today on February 17 (local time), equilibrium has been observed in Shiba Inu’s exchange inflows and outflows. On-chain data analysis shows that the volume entering exchanges and the volume moving out to external wallets have become equal, causing net inflows to converge to zero.

A net exchange inflow of zero indicates that selling pressure and buying pressure are tightly balanced among market participants. Typically, exchange inflows are interpreted as intent to sell, while outflows are seen as transfers to cold wallets for long-term holding. The fact that the two figures match suggests that both large investors and retail traders have entered a wait-and-see mode at current price levels.

The market views this data as a precursor to price compression for Shiba Inu. A state of equilibrium between supply and demand often appears just before a strong trend reversal or breakout. Currently, SHIB’s price remains in a narrow trading range, consolidating and gathering momentum.

Notably, whale activity has slowed while liquidity supply in the market has stabilized. As selling pressure has sharply declined, downside support has strengthened, while overhead supply is being absorbed in preparation for a potential upward breakout. Experts predict that the moment this equilibrium breaks will serve as a key turning point in determining SHIB’s short-term direction.

On-chain activity within the Shiba Inu ecosystem remains active, while changes in exchange reserves have been minimal. Market participants are closely monitoring shifts in liquidity flows following this equilibrium, along with overall supply and demand conditions across the broader digital asset market.

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