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Shiba Inu has experienced a severe price correction over the past week. The meme coin erased most of its recent gains, triggering widespread selling among holders. SHIB currently trades at $0.00000842, down 2.74% from its position seven days ago.
SHIB’s price action over the past 24 hours (Source:CoinCodex)
The decline marks a stark reversal from early January optimism. On-chain metrics reveal the extent of damage to investor positions. At the start of 2025, approximately 140 trillion SHIB tokens were held in profit. This figure reflected strong sentiment following December's rally when the token briefly touched $0.00001000 on December 5.
That bullish momentum collapsed quickly. Within just one week, the supply in profit plummeted by 62%. Only 57 trillion SHIB tokens now remain profitable. The rapid contraction demonstrates how swiftly market conditions shifted against holders.
Shiba Inu Supply In Profit, Source: Glassnode
Exchange Inflows Signal Distribution Phase
On-chain data points to a fundamental change in market dynamics. Exchange net position indicators show persistent green bars throughout the recent decline. These signals indicate tokens are flowing into exchanges rather than moving to cold storage.
Rising exchange balances typically precede further price weakness. Tokens deposited on exchanges sit closer to potential sale execution. The pattern suggests holders are positioning for exits rather than accumulation.
This behavior creates a self-reinforcing cycle. Declining profitability prompts selling decisions. Increased supply on exchanges adds downward pressure. Without fresh demand, the structure favors continued weakness.
The shift from accumulation to distribution appears decisive. December saw retail participation increase as SHIB rallied. That engagement has reversed as losses mounted. Many holders who entered during the spike now face underwater positions.
Critical Support Level Under Threat
SHIB trades just above a crucial support zone at $0.00000836. This level coincides with the 50-day exponential moving average. A break below would confirm technical deterioration and likely trigger additional selling.
The next support target sits at $0.00000786 if current levels fail. Such a move would deepen the correction by an additional 8% from current prices. Technical indicators suggest momentum remains negative.
Source, TradingView
However, a recovery scenario exists if buyers defend the $0.00000836 floor. A successful bounce could drive prices toward $0.00000898 resistance. Clearing that barrier would flip the 100-day EMA into a support role and stabilize the trend.