Shiba Inu in Real Trouble As Whale Activity Plunges By 70%

Shiba Inu (SHIB) whale investors are rapidly exiting the market, raising concerns about the token’s stability. Recent on-chain data shows a 70% decline in whale transactions. Specifically, SHIB transactions exceeding $100,000 have declined since late December 2024. Transactions worth over $1 million are similarly down.

Active withdrawals and withdrawal transactions for Shiba Inu (SHIB) significantly dropped since early 2025. Source: Santiment

These large transactions historically show whale interest in buying or selling. A sudden decrease indicates that significant holders are either reducing activity or leaving entirely.

Exchange Reserves and Inflows Confirm Bearish Trend

Exchange netflow data shows significant SHIB outflows from exchanges, particularly from December 2024 onward. Large negative netflow spikes indicate whales withdrew substantial amounts of SHIB tokens from exchanges.

SHIB’s exchange netflow data shows increased outflows starting late December 2024. Source: CryptoQuant

While withdrawals sometimes suggest long-term holding, sustained and large-scale outflows, as seen recently, typically point to declining confidence or reduced trading activity. This substantial negative netflow aligns with decreased whale participation.

At the same time, exchange reserves, the total SHIB tokens held on exchanges, dropped steeply. Exchange reserves fell from around 150 trillion SHIB to nearly 96 trillion tokens.

SHIB exchange reserves sharply declined since December 2024. Source: CryptoQuant

This steep decrease in exchange reserves suggests whales moved SHIB away from exchanges into private wallets or potentially sold large amounts. If they have sold their holdings, then it’s totally negative sentiment for SHIB.

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Technical Outlook Shows SHIB’s Struggle to Recover

Technical analysis confirms bearish pressure. Currently, SHIB trades at around $0.0000132, struggling below key exponential moving averages (EMAs). SHIB has remained consistently below its 50-day and 200-day moving averages, signaling ongoing downward momentum.

SHIB/USD price chart. Source: TradingView

Additionally, the Relative Strength Index (RSI) remains below 50, showing weak buying pressure. SHIB needs to recover past key resistance levels to regain bullish momentum.

Shiba Inu Active Withdrawals Decrease

Active withdrawal data from Santiment reveals a steady decline in withdrawal transactions over recent weeks, mirroring the reduced whale transaction volume. Lower activity shows reduced investor engagement. It means that major players are stepping back, reducing overall market participation.

Shiba Inu’s market is currently vulnerable, with whales reducing their involvement. Whales are crucial for providing liquidity and stabilizing prices. Their absence can lead to higher volatility and increased risk for retail investors.

Currently trading around $0.0000132, SHIB is near critical support at $0.000012. If this support level fails, prices could quickly fall toward $0.000010, deepening losses for holders.