Shiba Inu Sell-Offs Incoming: 82 Trillion Deposits Threaten To Crash SHIB Price

Overview

Recent on-chain data has revealed that a substantial amount of Shiba Inu is still held on exchanges, posing a risk of potential sell-offs that could negatively affect the SHIB price. With a significant portion of SHIB currently available for trading, market dynamics indicate increased selling pressure.

Current Situation of Shiba Inu

According to CryptoQuant data, the exchange reserve for Shiba Inu stands at 82 trillion coins. This marks an increase from approximately 81 trillion coins at the beginning of the year, suggesting heightened selling pressure. The rise in exchange reserves coincides with a decline in SHIB’s price, which has seen a reduction in its year-to-date gains. Notably, the price of SHIB has fallen from a peak above a certain value as the exchange reserve has increased.

Furthermore, the exchange net flow for SHIB has turned positive, indicating that more coins are being deposited into exchanges than are being withdrawn. This trend suggests that the market is currently experiencing a higher volume of selling compared to buying, further putting the SHIB price at risk of a decline. The positive net flow aligns with the moment when SHIB reached its yearly high, highlighting a correlation between market activity and price movements.

The broader crypto market sentiment has also been bearish, contributing to the sell-offs of SHIB. Bitcoin, for instance, has retreated to a certain value after initially rising above another value at the start of the year. This overall market pressure could be influencing traders’ decisions regarding Shiba Inu.

In addition to exchange activity, data from CoinGlass indicates that trading volume in the Shiba Inu derivatives market has decreased by just over 5%, falling to a specific volume. The open interest in SHIB has also seen a decline of over 7%, dropping to a particular figure. Despite these bearish indicators, it is worth noting that most traders remain bullish on SHIB, as evidenced by a long/short ratio exceeding 1.

Increased Whale Activity

On a more positive note, there has been a notable increase in whale transactions for Shiba Inu. An analytics platform has reported a 111% spike in whale transactions, indicating that larger investors are still engaging with the meme coin. This uptick in whale activity places SHIB among tokens with significant market capitalization that have experienced heightened whale transactions above a certain threshold.

Additionally, data from CryptoQuant reveals that the number of daily active addresses for Shiba Inu has risen since the beginning of the year, consistently staying above a specific number. This increase in active addresses suggests that interest in the SHIB ecosystem is growing, potentially offering a favorable outlook for the SHIB price in the event of a market rebound.

At the time of writing, the Shiba Inu price is trading at a certain value, reflecting a decline over the last 24 hours.

From author

The current situation surrounding Shiba Inu emphasizes the delicate balance between market pressures and investor sentiment. While the significant reserves on exchanges and the positive net flow present a bearish outlook, the increased whale activity and rising active addresses hint at underlying bullish sentiment. This duality in market signals creates an intriguing dynamic that could influence SHIB’s future performance.

Impact on the crypto market

• The presence of 82 trillion SHIB on exchanges may lead to increased selling pressure.
• Positive exchange net flow indicates more coins are being deposited than withdrawn.
• The bearish sentiment in the broader crypto market could be affecting SHIB’s price.
• Decreased trading volume and open interest in the derivatives market suggest waning investor interest.
• Increased whale transactions may provide a counterbalance to the selling pressure.
• A rise in daily active addresses indicates a potential resurgence of interest in the SHIB ecosystem.