Shiba Inu's futures market experienced a dramatic collapse with capital inflows dropping by more than 306% in the 24-hour period ending May 25th, according to CoinGlass data. The futures market recorded $4.25 million in outflows while only $3.82 million in inflows were observed, resulting in a net outflow of $430,000. The OI-Weighted Funding Rate turned negative, dropping from positive 0.0080% to negative 0.0106%, indicating that bears were paying bulls to maintain their positions. As per AMBCrypto analysis, this dramatic shift in futures flows suggests traders are reducing exposure rather than adding to it, which may be reducing the market's most aggressive selling pressure. The latest washout in derivatives may be capping out SHIB's 54% slide over the past 12 months, though it still looks more like a potential exhaustion setup than a confirmed reversal.
In stark contrast to the futures decline, approximately 490 billion SHIB tokens left trading platforms, signaling increased self-custody activity among holders. According to Etherscan on-chain data, the largest withdrawal within an hour was from Coinbase, totaling over 318 million SHIB tokens. Other major exchanges including Binance and Coinone also recorded significant token movements. The spot market maintained positive volume across multiple platforms including OKX, Bybit, Bitget, Coinbase, and Kraken, indicating sustained buying interest despite the broader market weakness. As reported by AMBCrypto, holders have also pulled nearly 490B SHIB off exchanges, which should ease near-term sell pressure, though supply relief alone has not yet translated into price acceptance as the Fear & Greed Index remains at 26.53, indicating fear among investors.
The conflicting trader behavior has created a range-bound market environment for Shiba Inu, with prices trading between $0.0000056 and $0.00000677 since February. As reported by AMBCrypto, the sellers have reduced momentum as evidenced by the MACD bars, while the Price Volume Trend has remained flat since mid-February. The current market structure shows Futures Vol at $80.88M, Spot Vol at $12.28M, and Open Interest at $52.62M, keeping the emphasis on derivatives positioning rather than clearly stronger spot demand. The weekly chart is showing a market that may be getting harder to push down sharply, while also lacking the fuel for an immediate breakout. Key support lies at $0.00000550, with the first bullish proof requiring reclaim of the 50-Day SMA at $0.00000606 and stronger confirmation needing takeout of the 200-Day SMA at $0.00000704.
