New data shows Shiba Inu’s (SHIB) profitable supply fell sharply over the prior week, reflecting how quickly December’s gains have been unwound. The change signals that a large portion of holders moved from profit to loss conditions in a very short window.
The same set of figures ties the profitability drop to a price pullback and higher exchange inflows, a combination that often aligns with distribution behavior. The market tone has shifted from accumulation to positioning for exits as liquidity migrates toward trading venues.
Profitability and flows are moving in the same direction
On-chain metrics place profitable SHIB holdings at roughly 57 trillion tokens, down from about 140 trillion at the start of the year. That represents a 62% contraction in profitable supply over one week, consistent with a fast reversal in holder cost-basis conditions.
SHIB was reported trading near $0.00000842 during the latest move, described as down 2.74% over seven days. The price softness alongside rising exchange inflows reinforces the idea that many holders are preparing to sell rather than add exposure.
The sequence is self-reinforcing: falling profitability encourages selling, selling increases exchange liquidity, and that added sell-side pressure deepens the correction. This feedback loop can accelerate when short-term participants are concentrated around recent local highs.
Key technical levels traders are watching
$0.00000836 is a critical support area, aligned with the 50-day exponential moving average. A clean break below $0.00000836 would be interpreted as further deterioration in market structure.
If that support fails, the next level is $0.00000786, which would act as the next downside reference point. The risk outlined is that losing these zones could trigger cascading liquidations as stops and forced selling stack into thin liquidity.
Some commentary possible bullish divergences and signs of whale accumulation as potential offsetting forces. Even with those mentions, the dominant on-chain framing remains profit-taking pressure and the possibility of a capitulation-style phase.
