On October 31, Shiba Inu (SHIB) exchange reserves fell to approximately 85 trillion tokens, according to data from CryptoQuant. this decline coincided with a negative netflow of 61.36 billion SHIB, signaling that investors may be withdrawing the meme token from exchanges to hold it long-term.
A retreat from the 87 trillion SHIB level
CryptoQuant reported that Shiba Inu's exchange reserves have dipped to roughly 85 trillion SHIB, marking a notable descent from the 87 trillion SHIB zone seen in previous days. While the 24-hour percentage decrease was a modest 0.007%, the downward trajectory suggests that the supply available for immediate sale on exchanges is tightening.
This movement reflects a broader trend in meme coin dynamics where massive supply shifts often precede volatility. As traders move SHIB off centralzed exchanges , they reduce the available sell-side liquidity, which can theoretically lead to price spikes if demand suddenly surges.
The 61.36 billion SHIB netflow divergence
The most striking figure in the recent data is the negative netflow of 61.36 billion SHIB recorded on October 31. a negative netflow indicates that more tokens are being moved out of exchanges and into private wallets than are being deposited, a metric often associated with investor accumulation.
This accumulation signal comes at a time when the wider cryptocurrency market is experiencing intense selling pressure.. As reported by CryptoQuant, major assets like Bitcoin, Ethereum, BNB, and XRP have all contributed to a period of heightened volatility throughout October, making Shiba Inu's internal supply shift particularly noteworthy.
Why SHIB price lags behind exchange withdrawals
Despite the bullish signals from exchange reserves, Shiba Inu's price action has struggled to find momentum. The token has faced consistent rejection of expected breakouts, leaving many traders skeptical about whether the on-chain data will eventually translate into a price rally.
This creates a tension between on-chain bullishness and price-action bearishness. while the supply is shrinking, the market-wide sentiment remains heavily weighted toward selling, which has effectively suppressed SHIB's ability to capitalize on its reduced exchange availability.
The unanswered question of sustained demand
Market analysts are now left to determine if this reduction in supply is a structural shift or merely a temporary divergence. It remains unverified whether the current withdrawal trend is being driven by long-term holders or if it is a short-term reaction to recent market fluctuations. Additionally, the source does not clarify if any specific large-scale institutional players are behind this 61.36 billion SHIB movement.
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