Shiba Inu whales transfer over 4 trillion SHIB tokens valued at $103 million to crypto exchanges over a two-week timeframe, compounding selling pressure.
This is according to data from Ali Martinez, a renowned market veteran. Citing a Glassnode chart, Martinez confirmed that exchanges have continued to receive more SHIB tokens since the middle of this month. The recent shift in trend follows an extensive period of persistent exchange outflows.
#ShibaInu | Over 4 trillion $SHIB have been sent to #crypto exchanges in the last two weeks, worth around $103 million! pic.twitter.com/dqVGW3LzuA
— Ali (@ali_charts) May 31, 2024
These outflows began late April and continued till May 13. Interestingly, this trend of sustained exchange withdrawals coincided with a massive retracement recorded by Shiba Inu. For context, SHIB collapsed from a high of $0.00002814 on April 23 to the cycle floor of $0.00002056 on May 1. This marked a 27% drop in a week, marked by six consecutive days of losses.
Whales Send 4T SHIB to Exchanges in 2 Weeks
Despite this downward push, whales and sharks continued to pull out their assets from exchanges, possibly to self-custodial wallets for long-term storage. Shiba Inu witnessed a recovery push from the $0.00002056 low on May 1. However, the shift in price trend did not change the trajectory of these flows, as outflows persisted until May 13.
Following this period of outflows, investors started depositing their tokens to exchanges, resulting in over 4 trillion moved to exchanges over the last two weeks. Data from CryptoQuant confirms this upsurge in inflows, indicating that Shiba Inu’s exchange reserve now sits at 153.5 trillion, representing 26% of the circulating supply.
In addition, CryptoQuant’s Exchange Netflow metric provides deeper insights into these flows. Notably, Shiba Inu saw massive spikes in positive exchange netflows from May 27 and 29, coinciding with a 169% spike in transaction volume reported by The Crypto Basic on May 28.
Shiba Inu Records Increased Exchange Inflows
Specifically, exchanges recorded netflows amounting to 607.8 billion SHIB on May 27, 1.069 trillion tokens on May 28 and 1.058 trillion on May 19. Cumulatively, these exchange saw additional 2.744 trillion Shiba Inu tokens within three days, marking the largest cluster of positive exchange netflows since late February.
Despite a recent drop in exchange reserve, amounting to 511 billion tokens over the last two days, exchange reserve is up, sitting at its highest value in nearly two months. While this rise in exchange reserve translates to an increase in selling pressure, historical data paints a different picture.
Interestingly, this spike in positive exchange netflows was also recorded by Shiba Inu in late February, right before the upswing that led to the $0.000045 peak. Notably, exchanges saw 2.122 trillion SHIB in positive netflows from Feb. 27 to 29, five days before Shiba Inu rose to $0.00004567 on March 5.
Meanwhile, at the reporting time, Shiba Inu is correcting the gains it picked up from May 27 to 29. SHIB has dropped by 6% since yesterday, currently changing hands at $0.00002588. Shiba Inu is looking to breach above the upper Bollinger Band at $0.00002746 to record another push toward a retest of $0.00003.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
