Shiba Inu Faces Volatility Threat as Top Wallets Tighten Their Grip

Shiba Inu, the popular dog-themed meme cryptocurrency, is down 0.95% during Monday U.S. market hours to reach $0.00000837. The downtick shows underperformance compared to broader crypto market with Bitcoin maintaining a sideways trend around $90,000. Despite the downtrend in SHIB price, the latest on-chain data shows a strong accumulation trend from large investors also known as whales, signaling their confidence for a potential upswing. However, a sizable amount of tokens moved by these entities signals a risk of supply control in this asset.

• Shiba Inu price faces a bearish reversal from the resistance trendline of falling wedge pattern, signaling a 22% drop ahead.
• Shiba Inu exchange reserves have dropped by nearly 22% since December 2025.
• The momentum indicator RSI dropped to 53% suggests a neutral market sentiment.

SHIB Exchange Supply Plummets 22% as Whales Hoard 80 Trillion Tokens

The recent onchain analysis highlights a significant control of Shiba Inu’s liquidity by crypto whales. Since early December 2025, centralized exchanges have experienced an outflow of around 80 trillion tokens from the platforms, bringing balance down from about 370.3 trillion to 290.3 trillion SHIB as of mid-January 2026. This amounts to a reduction of around 22% on trading venues in readily available supply.

Data indicates concentrated activity from newly created addresses during the previous 60 days. These wallets withdrew around 82 trillion SHIB, mostly from Coinbase, during times when the token was trading for around $0.0000085. 

At that point, the withdrawn volume equaled approximately 28% of the volume held in the exchanges and an equivalent portion of the net amount circulating outside exchanges.

Broader distribution patterns indicate increasing concentration in the hands of large holders. The top 100 addresses now hold more than 57% of the total supply, representing a significant increase over the past months, yet other tracked categories of “smart money” and whale addresses have increased holdings dramatically.

A small group of high-networth investors controlling SHIB’s supply indicate a risk of centralization on this asset. A coordinated sell-off from these investors could trigger dynamic moves in Shiba Inu price, cascading liquidation and panic among retail investors.

Shiba Inu Price Faces Risk of 22% Drop Within Wedge Pattern

Over the past week, the Shiba Inu price has witnessed a notable pullback from $0.00001008 to $0.0000089, registering a loss of 17%. Consequently, the asset market cap has also plunged from $4.96 billion.

A deeper look into SHIB’s daily chart shows that bearish pullback is positioned at the resistance trendline of a falling wedge pattern. Since mid-January 2025, the meme coin price has been resonating within the two converging trendlines, offering dynamic resistance and support to price.

Historically, a bearish reversal from this resistance trendline had accelerated the selling pressure in price, which resulted in sharp drop to the pattern’s bottom floor. The coin price holding steady below the 100-and-200-day EMA slope indicates an intact bearish trend, supporting the potential for continued correction ahead.

Thus, with sustained selling, the Shiba Inu price could plunge 24% down to hit $0.00000766.

On the contrary, a potential breakout from the pattern’s overhead trendline will signal an initial change in market sentiment.