This Sign Indicates Reduced Selling Pressure on Shiba Inu, Leading to Potential Upside

The total supply of Shiba Inu (SHIB) on exchanges is shrinking, according to data insights provided by Santiment, sparking hopes of a potential price rally.

According to the data shared by market analyst Trader Kamikaze, the total SHIB supply on exchanges has dropped by 0.51% over the span of one month.

This data coincides with a period of growing transaction activity on Shibarium, the protocol’s Ethereum-based layer-2 scaling solution.

#Crypto intelligence tracker @santimentfeed reveals a fascinating trend: $SHIB supply on exchanges has fallen by 0.51% since November 12, now at 7.85%! Less SHIB on exchanges generally means reduced selling pressure – setting the stage for potential gains.#Shibarium #ShibaArmy pic.twitter.com/zycIUOg8sV

— 山丨ㄥㄥ Trader_Kamikaze 🇧🇷 🤘 (@trader_kamikaze) December 12, 2023

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The shrinking exchange supply for SHIB is a good omen as the general perception is that it reduces the selling pressure of the digital currency.

SHIB Exchange Supply, Where are the Funds Going?

According to Trader Kamikaze, the slight drop in the SHIB supply on exchanges now implies that the amount of Shiba Inu in exchanges is now reduced to 7.85% of the total SHIB supply.

#Crypto intelligence tracker @santimentfeed reveals a fascinating trend: $SHIB supply on exchanges has fallen by 0.51% since November 12, now at 7.85%! Less SHIB on exchanges generally means reduced selling pressure – setting the stage for potential gains.#Shibarium #ShibaArmy pic.twitter.com/zycIUOg8sV

— 山丨ㄥㄥ Trader_Kamikaze 🇧🇷 🤘 (@trader_kamikaze) December 12, 2023

The accompanying chart shared by the trader shows a relatively healthy exchange flow balance when compared to the trend in early November. This metric is, however, not complemented by the SHIB supply on exchanges, which comes as a percentage of the token’s total supply.

This metric, depicted by the red line, is at its lowest level since at least June 12, 2023. A good explanation for this slump is that most of this capital are going into self-custody wallets for potential long-term HODLing. This trend reduces the selling pressure on SHIB.

Coincidentally, the outflow of SHIB on exchanges comes at a time when Shibarium transactions saw a dramatic turnaround over the past month.

Current data shows that Shibarium is on track to hit the 100,000,000 million transaction milestone if this latest trend is sustained. 

Implications for SHIB Price

With Shiba Inu in the spotlight, the decline in exchanges may alleviate the fear of selloff among the token’s core holders.

This is essential for SHIB; seeing its price action at this time suggests it might give up the 12.57% growth it has amassed since the start of the year.

At the time of writing, SHIB’s price is trading at $0.000009366, down 3.36% overnight per data from CoinMarketCap. The market cap is $5,519,674,622, while daily trading volume is down 17% to $199,479,810.

Once the market properly prices in this shrinking exchange supply data and other bullish fundamentals Shiba Inu boasts today, there may be a turnaround in SHIB’s price outlook.

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• Source: https://thecryptobasic.com/2023/12/13/this-sign-indicates-reduced-selling-pressure-on-shiba-inu-leading-to-potential-upside/?utm_source=rss&utm_medium=rss&utm_campaign=this-sign-indicates-reduced-selling-pressure-on-shiba-inu-leading-to-potential-upside