Data from the chain shows that a significant amount of Shiba Inu are still held at fairs the SHIB Prize threatens to decline due to sell-off. This comes amid a positive increase in net flows, indicating more coins are flowing into exchanges, likely decongesting them.
SHIB price at risk with 82 trillion Shiba Inu on exchanges
CryptoQuant data shows that the Shiba Inu exchange reserve is 82 trillion coins. This indicates higher selling pressure, especially as the value has risen from around 81 trillion at the start of the year. Amid this development, SHIB price has pared some of its gains since the start of the year, with the meme coin falling from a high above $0.000009, just as the foreign exchange reserve rose.
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Another bearish indicator for Shiba Inu right now is AC power. Further data from CryptoQuant shows this the exchange grid current has turned positive, indicating that more coins are being deposited on exchanges than being removed. As such, the meme coin is likely facing more selling pressure than buying pressure at the moment, putting the SHIB price at risk of falling.
Notably, the net flow from the Shiba Inu exchanges turned positive just as the SHIB price reached its annual high above $0.000009. Recent bearish sentiment in the broader crypto market has likely contributed to this sell-off for SHIB the Bitcoin price fell back to $90,000 after rising above $94,000 at the start of the year.
Activity in the Shiba Inu Derivatives Market also paints a bearish picture for SHIB price. CoinGlass data shows trading volume fell just over 5% to $203 million. SHIB’s outstanding stake also fell by more than 7% to $108 million. On the plus side, most traders are still bullish on the meme coin, with a long/short ratio above 1.
An increase in SHIB whale transactions
One positive for SHIB price is that whales still seem bullish on the meme coin. On-chain analytics platform Santiment recently pointed out a 111% spike in Shiba Inu whale transactions. This development puts SHIB among the tokens with a market capitalization of at least $500 that have seen an increase in market value. whale transactions above $100,000.
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Meanwhile, data from CryptoQuant shows that the number of daily Shiba Inu active addresses has increased since the beginning of the year and remains above the 3,000 threshold. This is positive as it indicates that attention is now returning to the SHIB ecosystem, which could positively impact the SHIB price once the crypto market rebounds.
At the time of writing, the Shiba Inu price is trading around $0.000008752, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Sketchfab, chart from Tradingview.com