Shiba Inu Sell-Offs Loom: 82 Trillion Deposits May Impact SHIB Price

On-chain data indicates a substantial quantity of Shiba Inu remains on exchanges, which may lead to a potential decline in SHIB's price due to imminent sell-offs. This trend coincides with a positive surge in net flows, suggesting more coins are entering exchanges, likely to be sold off.

Key Takeaways

Shiba Inu (SHIB) faces potential price declines due to 82 trillion coins held on exchanges.
A positive exchange netflow indicates that more coins are being deposited than withdrawn.
Market sentiment remains bearish, influenced by the broader cryptocurrency market trends.
Whale transactions for Shiba Inu have increased significantly, indicating potential future bullishness.
Daily active addresses for SHIB are on the rise, suggesting renewed interest in the token's ecosystem.

Shiba Inu

SHIB Price Faces Pressure with 82 Trillion Shiba Inu Held on Exchanges

According to data from CryptoQuant, the Shiba Inu reserve on exchanges has reached an alarming 82 trillion coins, signaling increased selling pressure. This figure is notable as it has risen from approximately 81 trillion at the beginning of the year. Meanwhile, the SHIB price has shown signs of weakening, slipping from a peak of over $0.000009 as the exchange reserves expanded.

Adding to this bearish outlook for Shiba Inu is the positive exchange netflow. Further insights from CryptoQuant illustrate that more coins are being deposited into exchanges than withdrawn. This scenario suggests that the selling pressure on SHIB currently outweighs the buying pressure, putting its price at considerable risk.

Shiba Inu
Source: Chart from CryptoQuant

Moreover, the exchange netflow turned positive just as the SHIB price hit its annual high above $0.000009. The prevailing bearish sentiment across the wider crypto market has likely fueled these sell-offs, especially with Bitcoin’s decline back to $90,000 after touching $94,000 earlier this year.

Activity within the Shiba Inu derivatives market reinforces this bearish sentiment, with CoinGlass reporting a trading volume dip of over 5%, now totaling $203 million. SHIB's open interest has similarly dropped by more than 7% to $108 million. On a brighter note, it appears that a majority of traders remain optimistic about the meme coin, as indicated by a long/short ratio above 1.

Increase in SHIB Whale Transactions Signals Potential Recovery

On a more positive note, whales seem to maintain a bullish stance on Shiba Inu. Santiment, an on-chain analytics platform, recently reported a remarkable 111% increase in whale transactions involving Shiba Inu. As a result, SHIB is now among the tokens with a market cap of at least $500 that have experienced a rise in whale transactions exceeding $100,000.

Additionally, data from CryptoQuant shows that the number of daily active Shiba Inu addresses has increased since the year's start, remaining consistently above the 3,000 mark. This upward trend suggests that interest in the SHIB ecosystem is rekindling, which could exert a positive influence on its price when the broader cryptocurrency market experiences a rebound.

As of this report, the Shiba Inu price stands at approximately $0.000008752, reflecting a decrease over the last 24 hours, according to CoinMarketCap data.

Shiba Inu
SHIB trading at $0.0000086 on the 1D chart | Source: SHIBUSDT on Tradingview.com