157 Billion Shiba Inu Exchange Netflow Signals Drying Liquidity, Incoming Price Rebound?

Key Insights:

• Shiba Inu crypto exchange netflows dropped were pegged at -157 billion, hinting at holder accumulation in private wallets.
• An old whale address moved $394,000 worth of SHIB from CoinOne exchange, its first withdrawal in months.
• SHIB show strong negative correlation with Bitcoin, hinting at a price rebound once BTC recovers.

Shiba Inu crypto has maintained its downtrend, with price hovering around $0.0000055 and exchange netflows turning negative. However, SHIB drying liquidity on exchanges, alongside large whale transactions, hints at an incoming price rebound.

Also, Shiba Inu exhibited a strong correlation with Bitcoin (BTC), as the broader market veers toward a new bullish revival.

157 Billion Shiba Inu Crypto Leaves Exchanges

Recent data from onchain analytics platform CryptoQuant showed SHIB has fallen in exchange volume. At the time of writing, Shiba Inu exchange netflows are pegged at -157 billion over the past month.

According to CryptoQuant, the exchange network showcases the balance between the volume of an asset entering and leaving exchanges.

An asset with a positive exchange flow shows more funds are entering exchanges than leaving, while the opposite holds for assets with a negative netflow.

In the case of SHIB, the -157 billion net flow suggests that investors are moving huge volumes of the memecoin SHIB off exchanges. They are likely transferring to private wallets, decentralized storage, or staking.

This behavior is commonly interpreted as a sign of long-term holding intent, rather than immediate selling. When tokens leave exchanges, it reduces the readily available supply that could be sold quickly. Typically, such moves ease short-term selling pressure on the market.

In the short to medium term, a strongly negative netflow is generally viewed as a bullish signal for price. When the liquid supply on exchanges decreases, it can create upward pressure if demand remains steady or increases.

This has historically correlated with price stabilization or rebounds in SHIB, especially when combined with whale accumulation.

Moreover, 117 billion Shiba Inu crypto were withdrawn from exchanges over the past 24 hours. This move has sparked a bull alert that the token could surprise cautious bears with a rebound.

SHIB Whale Transactions and Price Analysis

Another positive development that unfolded for Shiba Inu during the weekend involved a large whale transaction.

According to Arkham, an unknown wallet address, “0x9d9f823”, withdrew 65.2 billion SHIB, worth about $394,000, from CoinOne exchange. CoinOne is a major South Korean cryptocurrency exchange and one of the oldest in the country.

The 65.2 billion SHIB withdrawal from CoinOne was not seen as random. This is because the address has only done withdrawals for two years, no deposits, no swaps, no other tokens.

Following the latest withdrawal, the wallet held 1.616 trillion SHIB, valued at approximately $9.45 million.

If it is private accumulation, the move represents long-term conviction. However, if it is exchange cold storage, that is, supply moving off the market. Either way, large outflows and shrinking exchange supply are something to watch.

According to CoinMarketCap data, SHIB trades around $0.0000055, down 10.79% in the past week but showing some stabilization attempts.

SHIB has found support around $0.0000059–$0.0000061, and resistance towards $0.0000078–$0.0000081. A sustained hold of support could lead to a controlled rally toward the resistance zone.

On the flip side, a break below support might trigger further weakness, potentially testing lower levels like $0.000005.

Shiba Inu and Bitcoin Correlation: Can SHIB Rally Alone?

Meanwhile, recent data have pointed to a moderate to strong negative correlation between Shiba Inu crypto and Bitcoin price across timeframes.

The positive correlation is specifically shown in the price action. Bitcoin is currently showing signs of recovery, where the price dropped minimally by 0.24% in the past 24 hours to $66,255.

Likewise, Shiba Inu recorded a milder decline of 3.1%. On the monthly chart, BTC is down by 20%, while Shiba Inu crypto plunged 22% within the said time frame.

The SHIB price trajectory largely depends on the Bitcoin direction. Analysts note that SHIB often needs BTC strength; thus, it is uncommon for the memecoin to rally alone.

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