Shiba Inu Coin's recent exchange holdings have shown a significant decline. What signals might be hidden behind this?

**Key Observations**

SHIB has experienced noticeable downward pressure over the past six months, but recent on-chain data reveals two interesting changes. First, the supply of Shiba Inu on major trading platforms has dropped sharply, which could indicate two scenarios: either the market selling pressure has temporarily eased, or large holders are quietly accumulating. Second, the price has started to consolidate sideways, and the candlestick charts do show some signs of stabilization.

**Cautions and Misconceptions**

A decrease in exchange balances does not directly equate to a bottom signal. This data may hide multiple meanings—users withdrawing tokens to self-custody wallets, institutions adjusting their positions, or simple account migrations—all of which can cause changes in exchange data but are not necessarily linked to a market rebound.

More importantly, purely on-chain data can only reflect the "surface" of capital flows; market sentiment is the real key to price direction. The correlation effects among related tokens should not be overlooked—once the overall market sentiment reverses, individual assets may face passive adjustments.

**Practical Insights**

Shiba Inu Coin is currently like pressing the brakes repeatedly at a critical crossroads. Continuous declines, sudden traffic anomalies, and subsequent sideways consolidation—this rhythm certainly draws attention, but investors should focus more on whether the market consensus behind these data points is truly changing. Uncertainty remains high, and risk management should always come first.