Shiba Inu is posting large exchange inflows while hovering near its year low, stoking concerns about additional selling pressure.

U.Today, a blockchain outlet, reported on July 1 that recent on-chain data showed more than 493 billion SHIB flowing into exchanges.

In the cryptocurrency market, inflows to exchanges are often interpreted as holders moving assets to trading platforms where they can be sold. SHIB is currently trading near its year low, prompting caution that larger inflows could weigh on prices.

Price action is also leaning bearish. After breaking out of a range-bound pattern that lasted for months, SHIB failed to hold a small ascending triangle pattern that had left room for a rebound. The price remains below the 50-day, 100-day and 200-day moving averages. Those moving averages continue to slope downward, leading to an assessment that the overall market structure is bearish.

On-chain indicators, however, do not point in only one direction. Exchange outflows were about 585 billion SHIB, exceeding the 493 billion SHIB in inflows. Some investors are pulling SHIB off exchanges, while others are seen as repositioning assets in preparation for possible liquidations.

A more notable development is the rise in exchange balances. Exchange holdings jumped to about 86.9 trillion SHIB after a recent unexpected inflow. In general, declining exchange balances are interpreted as a sign that long-term holders are moving assets off exchanges, reducing short-term selling pressure. This time, the opposite has occurred.

Network activity was also not strong enough to offset price weakness. Active addresses and transaction counts improved slightly, but the market view is that it was not enough to show a meaningful rise in demand. Accumulation and preparations to sell proceeded at the same time, leaving direction unclear.

The key is who absorbs new supply and by how much. For SHIB to reverse course, buying demand would need to take in the inflow that reached exchanges and push the price back above key moving averages. Until then, the roughly 500 billion-coin exchange inflow should be viewed not as a bullish catalyst but as a warning signal, an assessment said.

In the end, the SHIB market has entered a phase where both inflows and outflows are rising, while increasing exchange balances and technical weakness are weighing more heavily. If a recovery in demand is not clearly confirmed, the latest large inflow is likely to be viewed as a supply overhang rather than a short-term rebound trigger.