Shiba Inu (SHIB) Lost 83% Inflows: Who Caused It?

Shiba Inu Treads Water Amidst Bearish Pressure and Dwindling Investor Interest

Shiba Inu's price has been stagnating, currently hovering around $0.00001450, after failing to break above the long-term resistance at $0.00001596. The daily chart illustrates this indecision, with sideways price action, several failed breakouts, and mounting bearish pressure from moving averages and market dynamics.

The most worrisome aspect, however, is the shocking decline in large holder inflows and outflows, which provides a clear picture of market sentiment. Outflows have plummeted by more than 80%, while large holder inflows have dropped by an astounding 83% over the last 30 days. This suggests that the big players and whales, often referred to as "smart money," have largely exited the market, leaving retail investors to carry the weight.

Since early May, inflows of up to 8 trillion SHIB have nearly disappeared, falling below 2 trillion SHIB. Outflows have followed a similar downward trend, signaling a lack of conviction in either direction. This is typically a bearish indicator, as low inflows and outflows often precede periods of low liquidity and stagnant prices—exactly what we're seeing now.

Analysts suggest this sudden shift isn't due to a single factor but rather reflects broader market conditions. Bitcoin's dominance has climbed back to 52%, drawing capital and attention away from altcoins. Meanwhile, SHIB's ecosystem has seen few meaningful updates to attract new investors or reignite momentum.

From a technical perspective, SHIB is clinging to key support levels at $0.000014 and $0.0000135. Without whale activity, the risk of a downward move increases, and a breakdown below this zone could lead to a retest of $0.000012. On the upside, reclaiming $0.000016 would be the first sign of renewed confidence.

For now, SHIB remains in limbo—caught between the absence of major holders and Bitcoin's dominance. The next chapter will determine whether SHIB weathers this stagnation or continues its decline.