Shiba Inu (SHIB) Outflows Spike Violently as Traders Rush to Self-Custody
TL;DR
Shiba Inu (SHIB) has seen a significant spike in exchange outflows, with nearly 490 billion SHIB being withdrawn from trading platforms. This trend indicates that large holders are moving their tokens to self-custody despite a declining price action.
Key points
- Shiba Inu exchange outflows have increased significantly.
- Nearly 490 billion SHIB has been withdrawn from exchanges.
- Exchange reserves for SHIB are declining.
On-chain metrics show a sharp increase in exchange outflows, suggesting that large holders may be aggressively removing tokens from trading platforms, even as SHIB price action continues to drift lower inside a larger downtrend.
Shiba Inu exchange flows flip
According to data from CryptoQuant's trending metrics, SHIB exchange outflows have increased significantly, with a total outflow volume of almost 490 billion SHIB. Concurrently, exchange reserves keep dropping, indicating that tokens are gradually moving away from centralized platforms rather than getting ready for an instant sale.
SHIB/USDT Chart by TradingView
This is significant because self-custody behavior is typically indicated by exchange outflows. Short-term selling pressure is usually lessened when traders transfer assets from exchanges to private wallets. The reasoning is straightforward: coins transferred into cold wallets or decentralized storage typically stay dormant for a longer period of time, whereas coins on exchanges are liquid and ready to be dumped.
The timing is noteworthy since SHIB's chart appears to be in poor shape. After repeatedly failing to recover resistance near the 200-day moving average, SHIB recently broke out of a rising wedge structure. With momentum waning and the RSI moving toward oversold territory, the asset is still stuck below all of the major trend indicators.
Technically speaking, unless SHIB can recover the upper wedge resistance and move back above the important moving average cluster, the structure still favors bears.
Normally, as traders get ready to sell their positions, bearish technicals coupled with negative sentiment toward meme coins would result in increased exchange inflows. Blockchain data, however, demonstrates the opposite.
Volatility pushes forward
Because of this divergence, there has been speculation that larger holders are discreetly accumulating in spite of unfavorable price action. The theory is supported by exchange reserve data. Even though , the overall amount of SHIB on exchanges is still trending downward.
Q&A
What caused the spike in Shiba Inu (SHIB) exchange outflows?
The spike in SHIB exchange outflows is attributed to large holders aggressively removing tokens from trading platforms for self-custody.
How much Shiba Inu (SHIB) has been withdrawn from exchanges recently?
Almost 490 billion SHIB has been withdrawn from exchanges, indicating a significant shift towards self-custody.
What does the decline in exchange reserves for Shiba Inu (SHIB) indicate?
The decline in exchange reserves suggests that tokens are being moved away from centralized platforms rather than being prepared for immediate sale.
