Shiba Inu Faces Unprecedented Further Decline as Holders Exit En Masse

▲ Shiba Inu (SHIB) / AI-generated image

Shiba Inu (SHIB) is standing at a critical crossroads between further decline and bottom consolidation as heavy inflows to exchanges intensify downward price pressure.

According to crypto media outlet U.Today on February 19 (local time), Shiba Inu recorded approximately 228 billion SHIB in exchange inflows over the past day, entering a vulnerable phase based on on-chain indicators. Large-scale token transfers to exchanges are typically interpreted as a leading indicator of increased selling pressure, and with the price chart showing a multi-month downtrend, this movement is heightening investor anxiety. While SHIB is attempting a rebound from recent lows amid downward-sloping major moving averages, it still appears insufficient to decisively break through resistance levels.

Buyers recently attempted to push past the $0.0000067 resistance zone but showed hesitation due to a lack of conviction. The substantial inflows are seen as holders preparing to sell or rebalance their portfolios. If SHIB fails to sustain a recovery rally and sellers take advantage of the current consolidation phase to unload tokens, the price risks swiftly dropping back to its previous low.

However, market conditions are not entirely bearish. Following a sharp decline in early February, recent trading sessions have shown attempts at price stabilization. SHIB is striving to build a modest support base amid slightly reduced volatility, and if buyers successfully absorb the incoming supply, the token could shift into a short-term sideways trend instead of experiencing another steep drop.

Ultimately, trading activity over the next few days is expected to determine SHIB’s short-term fate. Continued increases in exchange inflows could accelerate the downtrend, while a slowdown in inflows may provide renewed momentum for recovery. Analysts suggest that the recent surge in supply should be viewed not as a confirmation of imminent collapse but as a strong warning signal to the market.

Shiba Inu now stands at a survival crossroads, and whether it stabilizes and rebounds or enters a new chapter of decline will depend on liquidity provision and the cohesion of buying pressure. Amid extreme uncertainty, investors are advised to closely monitor whale wallet movements and changes in exchange balances while maintaining a cautious approach.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.