On-chain data reveals that a substantial amount of Shiba Inu remains held on exchanges, posing a risk to SHIB’s price from potential sell-offs. This situation coincides with a positive net flow, suggesting more coins are moving onto exchanges, likely to be sold.
SHIB Price Faces Pressure with 82 Trillion Tokens on Exchanges
Data from CryptoQuant shows Shiba Inu exchange reserves at 82 trillion coins, indicating heightened selling pressure. This reserve has increased from around 81 trillion at the start of the year. As these reserves grew, the SHIB price has pulled back from some of its year-to-date gains, declining from a high above $0.000009.
Another concerning signal is the exchange netflow, which has turned positive according to further CryptoQuant data. This means more SHIB is being deposited into exchanges than withdrawn, suggesting selling pressure currently outweighs buying pressure and increasing the risk of a price decline.
The shift to positive netflow occurred just as SHIB hit its yearly high above $0.000009. The recent downturn in the broader crypto market, with Bitcoin falling back to $90,000 after surpassing $94,000 earlier this year, has likely contributed to this selling pressure on SHIB.
Activity in the Shiba Inu derivatives market also appears bearish. Data from CoinGlass shows trading volume down just over 5% to $203 million, and open interest down more than 7% to $108 million. A silver lining is that most traders remain bullish, with the long/short ratio staying above 1.
A Rise in SHIB Whale Transactions
On a positive note, whales seem to maintain a bullish stance on SHIB. On-chain analytics platform Santiment recently noted a 111% spike in Shiba Inu whale transactions. This places SHIB among tokens with a market cap of at least $500 million that have seen an increase in large transactions exceeding $100,000.
Additionally, CryptoQuant data indicates that the number of daily active Shiba Inu addresses has risen since the beginning of the year and remains above 3,000. This is encouraging as it shows renewed attention on the SHIB ecosystem, which could support the price once the crypto market recovers.
At the time of writing, Shiba Inu is trading around $0.000008752, reflecting a decline over the past 24 hours, according to CoinMarketCap data.
Frequently Asked Questions
Of course Here is a list of FAQs about a Shiba Inu SellOff Alert designed to answer questions from beginners to more advanced investors
Beginner Definition Questions
1 What does SellOff Alert even mean
Its a warning that a large amount of a cryptocurrency is being moved to exchanges which often means the holders plan to sell it This potential surge in selling can push the price down
2 What are the 82 Trillion SHIB deposits
It refers to a very large number of SHIB tokens being transferred from private wallets to cryptocurrency exchanges 82 trillion is a massive amount worth tens of millions of dollars
3 Why would someone moving SHIB cause a price crash
Basic economics of supply and demand If a huge amount of SHIB is suddenly available for sale on exchanges and there arent enough buyers to absorb it all at the current price sellers will have to lower their prices to find buyers causing the price to drop
4 Who is moving all this SHIB
Its often large holders sometimes called whales This could be early investors investment funds or even the projects development treasury taking profits or adjusting their holdings
Intermediate Impact Questions
5 Is this definitely going to cause a crash
Not necessarily Its an alert about a risk A crash depends on if the tokens are actually sold and how the market reacts Sometimes large movements are just transfers between wallets for other reasons
6 How can I check if this is really happening
You can look at blockchain explorers like Etherscan for SHIB Look for large transactions where the destination is a known exchange wallet
7 Whats the difference between a deposit and a sell
A deposit is moving tokens to an exchange A sell is executing a trade on that exchange Deposits are a precursor to a potential selloff but the selling hasnt happened yet
8 Should I sell my SHIB right now because of this alert
This is not financial advice