Shiba Inu (SHIB) traded largely sideways on Tuesday following a volatile week marked by intense selling pressure across the broader cryptocurrency market. Over the past seven days, the meme coin has fallen nearly 4%, remaining stuck within a narrow range since mid-May as investor sentiment stayed cautious.
Despite signs of weakness across major digital assets, fresh on-chain activity involving large SHIB withdrawals from exchanges has sparked renewed discussion about whale positioning and the token’s longer-term outlook. According to data from analytics platform CryptoQuant, nearly 490 billion SHIB tokens were withdrawn from centralized exchanges on May 24, potentially easing immediate selling pressure in the open market.
Large exchange withdrawals are often interpreted as a sign that investors may be shifting toward long-term holding rather than preparing to sell. The trend has fueled speculation that whales could be accumulating during the current downturn, while declining exchange reserves may help reduce short-term sell pressure.
According to Coinglass data, SHIB futures flows dropped sharply over the past 24 hours, with outflows exceeding inflows by $530,000, suggesting traders are reducing leverage or moving funds into cold storage. On the other hand, SHIB’s burn rate has fallen by nearly 90% in recent weeks, raising questions about whether the token’s supply-reduction narrative can continue to support bullish price expectations.
TradingView analyst “Aurex-finance-excosystem” noted that SHIB’s weekly chart is forming a large contracting descending triangle, with converging trendlines indicating continued consolidation. Within this structure, the analyst identified a completed Elliott Wave zigzag correction and assigned a 68% bullish confidence level after the final downward leg completed near the triangle’s lower boundary. “The corrective zigzag appears to have reached completion at a strong Higher Timeframe support zone. This confluence increases the probability of bullish trend resumption and a potential breakout from the descending triangle,” the analyst stated, though adding that signals on the 3-month timeframe remain unclear.
Separately, analyst “Crypto With Gopal” pointed to a broad falling wedge pattern on SHIB’s chart, a structure traders often associate with potential bullish reversals. According to that analyst, the token has repeatedly defended a lower support zone despite sustained selling pressure, suggesting buyers may be gradually stepping back in as downside momentum weakens.
At the time of writing, SHIB was trading at $0.000005609, down 1.25% over the past 24 hours.
Source: 490 Billion SHIB Pulled From Exchanges as Whales Accumulate