Shiba Inu records 669 billion token inflow as exchange reserves swell

Shiba Inu holders transferred 699.3 billion SHIB to trading platforms on June 2, the largest single-day exchange inflow in 30 days, on-chain data shows. The spike came as SHIB traded near local lows around $0.00000525, with exchange reserves climbing to 80.5 trillion tokens, according to CryptoQuant.

The June 2 inflow of 699.3 billion SHIB far exceeded the average daily inflows recorded throughout May. Exchange reserves have risen steadily, reaching 80.5 trillion SHIB, while total exchange inflows surpassed 631 billion tokens. The token has broken below a multi-month rising support line that had held since March, pushing prices toward the $0.00000520-$0.00000530 range. The Relative Strength Index sits near 36, approaching oversold territory, though previous oversold readings during this downtrend have failed to generate sustainable recoveries.

The question is whether the 669 billion inflow represents capitulation or preparation for another distribution wave. If buyers absorb the incoming supply, SHIB could stabilize and attempt a recovery; if not, the token faces further downside, with the next support level near $0.00000540.

Exchange reserves keep up the pressure

More comprehensive exchange metrics point to a seller-dominated market. Exchange reserves have risen toward 80.5 trillion SHIB, meaning more tokens are available for immediate trading, reducing scarcity and increasing the likelihood of sell-side pressure. Exchange net flows remain strongly positive, indicating more SHIB entering exchanges than leaving them. The broader market structure remains bearish, with SHIB recently breaking down from a rising wedge pattern that had supported price action through most of the spring.

The divergence between spot and derivatives markets adds nuance. While exchange inflows surged, futures open interest dropped 6% to $49 million, with net futures outflows of $865,790 in a single session, according to Coinglass. Spot trading volume rose 18% to $12 million, suggesting some direct buyers remain active even as leveraged traders reduce exposure. SHIB's price action has remained within a narrow 2% range over the past four days, limiting profit opportunities for derivatives strategies.

From a technical standpoint, SHIB remains stuck below its 50-day, 100-day and 200-day moving averages, all of which continue to function as dynamic resistance. The 200-day moving average sits significantly above the current market price. The token now trades below all three major moving averages, confirming sellers control the market structure.

This article is for informational purposes only and does not constitute investment advice.