Shiba Inu (SHIB) is experiencing a significant supply squeeze as approximately 86 billion tokens have been withdrawn from exchanges within a 24-hour period, according to CryptoQuant data. This substantial outflow marks a strong negative net flow, reducing the immediate supply available for trading and potentially impacting market dynamics. The reduction in exchange reserves suggests a shift in market sentiment, with holders less inclined to sell in the short term. This has led to a stabilization in SHIB's price, which is now trading within a tighter consolidation range above recent support levels. While the selling pressure has eased, demand remains uncertain, and the market awaits stronger participation to confirm any upward trend. Despite the decrease in exchange supply, network activity shows only moderate improvement, with a slight increase in active addresses. This indicates that while some engagement is returning, the market has not yet seen a significant influx of new participants. The ongoing capital rotation across digital assets suggests that investors are actively repositioning rather than exiting the market entirely, setting the stage for potential price movements if demand strengthens.