Key Takeaways
SHIB sees whale accumulation and declining exchange reserves, signaling long-term confidence. Rising transaction activity and reset Open Interest suggest a potential breakout if support holds and bullish momentum returns.
A whopping 5 trillion Shiba Inu [SHIB], worth nearly $70 million, was recently transferred from Coinbase Institutional to an unknown wallet.
This massive transaction has stirred speculation about whale activity and long-term investor positioning.
At the time of writing, SHIB was trading at $0.00001311 after plummeting 12.87% in the last 24 hours. Large-scale institutional outflows like this often imply strategic accumulation, not short-term dumping.
Therefore, this movement could reflect growing confidence in SHIB’s future upside. Still, market participants await confirmation from broader on-chain and technical indicators before betting on sustained bullish momentum.
Why are SHIB reserves on exchanges declining despite price uncertainty?
The total value of SHIB held on exchanges has dropped by 10.74%, now sitting at $1.15 billion. This decline in Exchange Reserves often signals reduced sell-side pressure and increased holding conviction among investors.
As more tokens move to self-custody, the available supply for immediate trading shrinks, potentially laying the groundwork for price appreciation.
Moreover, this trend aligns with the recent whale withdrawal from Coinbase.
While the price remains below key resistance levels, the ongoing drop in reserves suggests that many holders are preparing for longer-term gains rather than short-term exits.
Source: CryptoQuant
Can SHIB’s rising transaction activity validate renewed investor interest?
Transaction activity across all value bands has surged significantly over the long term. Small retail transactions between $1 and $100 grew over 57%, while high-value transactions in the $1M–$10M range rose by a staggering 750%, at press time.
This consistent increase across segments highlights expanding engagement from both retail and whales. Although current price action appears muted, these on-chain metrics signal robust foundational growth.
Therefore, SHIB’s network is witnessing healthier distribution and broader usage, which could support a price breakout if macro and technical conditions align favorably in the near term.
Source: IntoTheBlock
Does plunging Open Interest reflect fading trader conviction?
Open Interest in SHIB’s Futures market has declined by 26.22%, falling to $228.45 million.
This steep drop suggests that many traders are pulling back from speculative positions, likely due to recent volatility or uncertainty about SHIB’s near-term direction.
While this reduction may initially seem bearish, it also implies a reset in excessive leverage and could pave the way for more stable market conditions.
If fresh momentum returns, this cleaner slate could enable more sustainable price movements without the burden of over-leveraged longs or shorts.
Source: CoinGlass
Will SHIB hold key support or revisit lower levels?
SHIB’s recent pullback has brought it to a tight trading range, between the $0.00001600 resistance and the $0.00001313 support zone.
After rejecting the upper range, the price has retraced and now tests the lower bound. The RSI stood at 48.54, at press time, indicating neutral momentum with no immediate signs of either bullish or bearish dominance.
However, if buyers defend this support level and push toward $0.00001600 again, a breakout toward $0.00001772 becomes plausible.
Conversely, failure to hold could expose SHIB to deeper losses near previous demand zones.
Source: TradingView
Is SHIB preparing for a major breakout?
Given the ongoing whale accumulation, falling exchange reserves, and rising on-chain engagement, SHIB’s outlook appears cautiously optimistic.
The sharp decline in Open Interest has reset the speculative landscape, potentially reducing volatility and enabling clearer directional moves.
If bulls defend current support and regain momentum, a breakout above $0.00001600 could validate bullish continuation. Therefore, SHIB might be positioning for a decisive move—investors should monitor upcoming reactions closely.