Shiba Inu Tenders Withdraw 125.000 billion SHIB from exchanges as price drops 14% in December

Source: Yellow Original Title: Shiba Inu Whales Withdraw 125.000 Billion SHIB from Exchanges as Price Drops 14% in December

Original Link: Over 125.000 billion SHIB tokens have been withdrawn from centralized exchanges in recent days, according to CryptoQuant data.

The withdrawal represents a significant reduction in the immediate available supply on trading platforms.

Currently, SHIB is trading at $0.00000718, down approximately 14% in December and 72% over the past year.

Net flow data shows investors moving substantial positions from centralized platforms to self-custody wallets.

What happened

CryptoQuant recorded a negative net flow of 125.9 billion SHIB in recent days.

These withdrawals follow a pattern established earlier this month, when over 8 trillion SHIB left exchanges within 24 hours.

A notable whale withdrawal occurred on December 15, when an inactive wallet moved 53.59 billion SHIB from a trading platform after exactly one year of inactivity.

The wallet had previously sold its entire 52 billion SHIB position in December 2024, successfully avoiding the 72% decline of the token during 2025.

Its return to the market suggests that sophisticated traders see current levels as a potential value floor.

Exchange outflows typically indicate three scenarios: long-term accumulation, transfers to cold storage for security, or internal wallet restructuring by large holders.

The magnitude and consistency of the negative net flow suggest genuine accumulation rather than simple wallet management.

Market participants preparing to sell usually increase deposits on exchanges, not decrease them.

The opposite pattern indicates that sellers are becoming scarcer at current price levels.

However, the data shows mixed signals.

On-chain analytics firm Santiment reported that on December 9, approximately 1.06 trillion SHIB tokens were added to exchange reserves.

Simultaneous inflows and outflows suggest uncertainty among large holders as the price struggles.

Why it matters

Reducing supply on exchanges fundamentally alters market structure by removing tokens placed for immediate sale.

Less available inventory means fewer tokens ready to meet demand spikes.

However, technical indicators show that SHIB remains in an established downtrend despite momentum flattening.

The token is trading below key moving averages, with momentum indicators in oversold zones.

SHIB has fallen 14.15% just in December, continuing a pattern of weakness during the last month of the year.

The cryptocurrency lost 29.5% in December 2021, 13.5% in December 2022, and 21% in December 2024.

Only December 2023 provided relief with a 24.6% increase.

Market analysts point to the divergence between on-chain activity and price behavior.

While network metrics show ongoing commitment, the token’s value has not responded.

The combination of reduced exchange supply and technical compression creates asymmetric risk profiles.

The downside risk appears limited by the exhaustion of selling pressure and the scarce presence of sellers.

The upside potential increases because there is less supply ready to absorb buying pressure.

However, SHIB needs at least a 16.6% gain from current levels to close December in positive territory.

Trading volumes tend to decline during holiday periods, making such a recovery unlikely.

24-hour volume recently increased by 13%, but remains below $100 million, raising doubts about the sustainability of a possible rally.

The broader meme coin sector faces similar pressures.

Dogecoin has also experienced double-digit monthly losses despite limited recovery attempts.

Risk aversion sentiment in cryptocurrency markets has pushed investors away from speculative assets toward more established positions.

SHIB holders face a market where strong on-chain activity has decoupled from price action, a pattern that could persist for extended periods before reversing.