By Victor Swaezy 
Shiba Inu (SHIB) remained under sustained pressure as fresh on-chain data highlighted a sharp increase in tokens flowing onto exchanges.
According to recent metrics, traders appear to be favoring selling over accumulation during the ongoing correction, raising concerns about further downside risk.
Data from CryptoQuant showed net exchange inflows rising by nearly four percent within 24 hours, with approximately 332.5 billion SHIB deposited across major trading platforms. Analysts note that such inflows often indicate preparation to sell, increasing short-term supply and weighing on price action.
SHIB Trades Near Multi-Year Lows
At the time of analysis, Shiba Inu was trading near the $0.0000063 level, a price range last seen in mid-2023. The token recorded an additional daily decline of close to six percent, deepening bearish sentiment among short-term traders.
An analyst monitoring meme coin flows warned that persistent exchange inflows tend to amplify downside risks, particularly when spot demand remains weak. Brief price rebounds have struggled to gain traction, suggesting that investors are prioritizing capital protection rather than chasing short-term recoveries.
Exchange Inflows Reflect Cautious Investor Behavior
On-chain activity revealed limited accumulation from larger wallets, with transaction patterns instead showing steady transfers toward exchanges. At the same time, spot trading volumes remained muted during attempted rebounds, pointing to fragile market confidence.
The current downturn represents Shiba Inu’s sharpest correction of the year, erasing gains accumulated over months of gradual recovery. This setback has slowed retail participation and kept institutional involvement minimal, reinforcing the token’s vulnerability during the decline.
Broader Market Conditions Add to the Pressure
Wider cryptocurrency market uncertainty has continued to weigh on speculative assets. While Bitcoin and Ethereum have shown relative stability, risk appetite across altcoins has remained selective, leaving meme tokens like SHIB exposed to heavier selling pressure.
Derivatives market data also indicated reduced leverage exposure, signaling a defensive stance among traders. With liquidity preferences increasing, many investors appear reluctant to take extended risk amid persistent volatility.
Psychological Levels Raise Downside Concerns
Analysts highlighted the psychological impact of key price thresholds, noting that a move toward lower decimal levels could further weaken sentiment. Such conditions may discourage dip-buying behavior and prolong consolidation unless exchange inflows reverse into sustained outflows.
Despite the weakness, selling activity has remained orderly, with no signs of panic-driven liquidations. However, continued inflows could cap upside attempts in the near term. Without a clear shift in on-chain flows and renewed demand, Shiba Inu may continue to struggle to stabilize and avoid deeper losses.