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Shiba Inu Faces Market Uncertainty Amid Massive Token Inflows

Shiba Inu (SHIB), the popular dog-themed cryptocurrency, is experiencing heightened volatility as over 2 trillion SHIB tokens have been transferred to exchanges, raising concerns about potential selling pressure and price stability.

Market Volatility and Price Fluctuations

Between May 29 and May 30, 2025, SHIB's price fluctuated within an 8% range, trading between $0.00001325 and $0.00001451. This volatility was accompanied by a nearly 7% drop in price over 24 hours, hitting an intraday low of $0.00001328 . The influx of tokens into exchanges has increased the exchange-held supply from 139 trillion to 141 trillion SHIB, equating to over $28 million worth of tokens potentially entering the market .

Technical Indicators Point to Bearish Trends

Technical analysis reveals that SHIB has broken below its 50-day Exponential Moving Average (EMA) at $0.00001425, indicating mounting bearish momentum. A descending triangle pattern, coupled with a bearish engulfing candle below the 0.382 Fibonacci retracement at $0.00001368, suggests further downside potential. The Moving Average Convergence Divergence (MACD) indicator also shows a deepening negative histogram and a bearish crossover, reinforcing the bearish outlook .

Whale Activity and Long-Term Holding Trends

Despite the short-term bearish signals, some large investors, known as "whales," have moved significant amounts of SHIB into cold storage. Notably, 34 trillion SHIB tokens have been transferred off exchanges, signaling a shift toward long-term holding and reducing immediate selling pressure .

Burn Rate and Supply Concerns

Shibarium, Shiba Inu's layer-2 blockchain, has burned approximately 1.15 billion SHIB tokens since its launch. However, given the massive circulating supply of 549 trillion tokens, this burn rate is considered insufficient to significantly impact the token's scarcity or price. At the current pace, it would take over a century to burn 1 trillion tokens, price appreciation in the near term.