Here’s Main Reason Why Massive Shiba Inu Surge Could Be Just Around the Corner

While Shiba Inu investors have been underwater, new on-chain metrics on exchange reserves and whale accumulation indicate a potential bullish surge.

Shiba Inu continues to struggle amid the unyielding Bitcoin-led market pullback that has persisted for the last seven days. Presently, Shiba Inu is at risk of surrendering the $0.00002 price level to the bears, having recorded an intraday low of $0.00002101, a further diminished figure from yesterday’s bottom.

At a floor price of $0.00002156, Shiba Inu has lost more than 15% of its value in the past week. However, the market intelligence platform Santiment has suggested that Shiba Inu could soon be witnessing relief.

Less Shiba Inu Available for Sale on Exchanges

In an update on Thursday, Santiment called attention to the declining amount of Shiba Inu on centralized exchanges. The report revealed that the wallets of the top ten most prominent exchanges have witnessed reduced holdings since May 27.

Specifically, their whale wallets now hold 2.4% fewer SHIB tokens than in the last three weeks. The accompanying chart depicted that from mid-May, the supply of Shiba Inu on exchanges grew, reaching a new monthly high, before a declining trend ensued in the concluding days. 

Furthermore, the withdrawal of SHIB from the exchange gained increased momentum in the first week of June, as depicted by the steeper decline on the chart. According to Santiment, exchanges held 164.63 trillion SHIB tokens as of June 12.

Santiment emphasized that decreased crypto holdings of exchange have historically been a bullish signal for an asset. 

🐳 The top 10 exchange wallets on the #ShibaInu, #Chainlink, and #Ethereum networks, respectively. Since May 27th, their holdings have shrunk by:

📉 $SHIB: -2.4%
📉 $LINK: -2.9%
📉 $ETH: -8.6%

Decreasing exchange supplies should be considered a good sign for bullish traders. 👍 pic.twitter.com/MbrSKaFF8s

— Santiment (@santimentfeed) June 13, 2024

In other words, investors have continued accumulating SHIB from exchanges amid low trading values, and the asset is primed to benefit from the buying frenzy in the next few days. These investors have persistently pulled their funds to self-custodial wallets.

Moreover, the accumulation of Shiba Inu by whales is further validated by the continuous increase in wallets holding between 10,000 and 10 million SHIB tokens since March. Currently, there are 831,548 such addresses, reflecting an addition of 36,281 new wallets since the trend gained momentum on March 5.

How High Can SHIB Go?

While Santiment refrained from predicting potential targets for SHIB amid the accumulation trend from exchanges, other market watchers have made propositions based on technical formations on the Shiba Inu chart.

Earlier this month, a Bitcoin analyst warned investors that the opportunity to buy Shiba Inu was closing. He suggested a potential 501% rally that could drive the asset to $0.00014 was imminent. 

Similarly, Shiba Inu community analyst SHIB Knight expressed a comparable sentiment. He emphasized that buying SHIB in the $0.00001859 to $0.00002322 range positions investors for a significant profit. SHIB Knight proposed a potential 300% increase to $0.0001 this month.