Gushiken Yona
The on-chain landscape of Shiba Inu is shifting fast—exchange reserves are drying up, and whales are making big moves. As billions of SHIB vanish from trading platforms and high-value transactions surge, traders are left questioning: accumulation or a looming sell-off?
Typically, a dwindling exchange reserve is viewed as a bullish indicator. With fewer tokens readily available for sale, a potential supply crunch could push prices higher—provided demand remains strong. However, another key metric introduces uncertainty into this equation.
Shiba Inu Exchange Reserves Decline—A Bullish or Bearish Signal?
Data from on-chain analytics firm CryptoQuant reveals a sustained decrease in the amount of SHIB held on major cryptocurrency exchanges. The “Exchange Reserve USD” chart, which tracks the total US dollar value of SHIB on these platforms, shows a clear downward trend, particularly since mid-2023.
This decline suggests that investors are increasingly withdrawing their SHIB from exchanges, potentially moving them to private wallets for long-term holding, staking, or use in decentralized finance (DeFi) protocols. A lower exchange reserve can often indicate a supply squeeze, potentially leading to price appreciation if demand remains steady or increases.
However, while a dwindling exchange reserve is often considered bullish, it’s essential to assess whale activity and transaction patterns to understand the full picture.
Historically, a decreasing exchange reserve has often been considered a bullish indicator for cryptocurrencies. A lower supply of tokens readily available on exchanges can create upward pressure on price, assuming demand remains constant or increases. This is because fewer coins are available for immediate sale, potentially creating a “supply shock” if buying interest rises.
Whale Transactions Surge—What It Means for Shiba Inu
While the declining exchange reserve paints a potentially optimistic picture, another key metric from IntoTheBlock adds a layer of complexity.
IntoTheBlock’s “Large Transactions Volume” data, which tracks transactions exceeding $100,000 in value (a proxy for whale activity), shows a significant spike earlier this week. On March 20, the volume of large SHIB transactions reached a 7-day high of $97.08 million (7.49 trillion SHIB).
This surge in whale transactions raises a critical question: Are whales accumulating SHIB, or is this a sign of impending sell pressure? The answer could determine the next major move for SHIB’s price.
Price Action
Shiba Inu (SHIB) continued its upward momentum on Tuesday, reaching $0.00001365 by 11:21 a.m. ET. Trading volume surged 22.41% to $202.04 million in the past 24 hours, reflecting increased investor activity.
The token posted a 1.32% daily gain and a substantial 10.23% increase over the last seven days. According to data from CoinMarketCap, SHIB’s circulating supply stands at 589.25 trillion tokens, with its market capitalization rising 1.33% to $8.04 billion.
Read More
- Shiba Inu Signals Breakout as Key Metric Turns Bullish
- LEASH Heats Up As Scarcity and Whale Power Fuel Price Upswing
- BONE Surges as Bullish Breakout Signals More Upside
Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
