A combination of on-chain and market activity is supporting bullish sentiment for Shiba Inu despite the ongoing consolidation.
Yesterday, millions of Shiba Inu disappeared from exchanges, hinting at renewed accumulation despite price uncertainties. Additionally, key network metrics are turning green, further amplifying the momentum in the meme coin’s ecosystem.
Key Points
- Yesterday, millions of Shiba Inu disappeared from exchanges, hinting at renewed accumulation despite price uncertainties.
- The 82,066,732,850,077 $SHIB in reserve on January 25 has dropped to 82,066,703,680,231 $SHIB today, culminating in the 29 million $SHIB difference.
- Total exchange outflow also stood at 256 billion $SHIB, while inflow was 183.5 billion $SHIB, showing that withdrawals far outpaced deposits.
- Aside from net inflows, Shiba Inu has also seen renewed user participation, with boosts in transaction count and active addresses.
Shiba Inu Exchange Reserve Drops
CryptoQuant data shows that 29,169,846 $SHIB moved out of exchanges in the past 24 hours. As of yesterday, there were 82,066,732,850,077 $SHIB in reserve. However, this has dropped to 82,066,703,680,231 $SHIB at press time, culminating in the 29 million $SHIB difference.
Shiba Inu Exchange ReserveCryptoQuant
The platform’s trending metric overview also confirms this. It shows that the exchange reserve dropped by 0.09% in the past 24 hours and has been on a downtrend in the last seven days.
Total exchange outflow also stood at 256 billion $SHIB, and inflow at 183.5 billion $SHIB. This shows that while deposits into centralized trading platforms have been substantial, those withdrawing from them far outpace those depositing.
Notably, withdrawals of this nature suggest that users prefer self-custody over leaving their tokens on exchanges. Not only does this spark bullish sentiment, but it also reduces immediate selling pressure.
Growing Network Participation Sparks Rebound Prospect
Aside from net inflows, Shiba Inu has also seen renewed user participation. CryptoQuant shows a mild 0.83% increase in active addresses to 195. The active receiving address also improved by 1% to 131.
Furthermore, the total transaction count increased to 5,863, aligning with the rise in active addresses on the network. Altogether, this shows signs of life in the Shiba Inu ecosystem.
While this may not affect prices now, its sustainability is a crucial indication that a recovery is not far-fetched. When the broader crypto market stabilizes and Shiba Inu reclaims key moving averages, such increased participation could drive a big price shift.
In the meantime, Shiba Inu trades at $0.00000767, down 1% in the past 24 hours and 2.7% in the last seven days. Despite this downtrend, it remains up 10.5% year-to-date, showing resilience amid weak momentum in the crypto market.
A recent analysis highlighted that Shiba Inu has a key support level around $0.0000074, and continued price action above it could pave the way for further gains. However, it comes with an alleged March timeline for $SHIB to recover to $0.50 or face a steeper correction.
