Shiba Inu Adds 56,681,035,106 Tokens in 24 Hours but This Could Be Bearish

The Shiba Inu reserve on crypto exchanges has increased over the past 24 hours as holders move to trading platforms amid market uncertainties.

Shiba Inu added a staggering 56.68 billion SHIB in the past 24 hours. However, the meme coin did not add this in its dollar equivalent to the market cap or trading volume, but to the amount of the token available in exchanges.

Shiba Inu Reserve Increases in 24 Hours

On-chain data shows that the Shiba Inu exchange reserve added 56,681,035,106 SHIB over a 24-hour period, as holders deposit their tokens to trading platforms. Specifically, as of October 20, the number of SHIB on all exchanges was 82.09 trillion.

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However, this increased on October 21 to 82.14 trillion SHIB, marking a 0.07% uptick. While this may be meager, it indicates the current sentiment among holders of the second-largest meme coin by market cap.

For context, deposits into exchanges suggest that users are likely to offload their holdings rather than keep them. While this does not directly equate to sales, it increases selling pressure and dampens market sentiment.

Furthermore, these inflows usually come from self-custody wallets or staking platforms. Their migration from these platforms means there are more SHIB tokens available on exchanges, further neutralizing demand while reducing the number of SHIB locked in for long-term holding.

Bearish for Shiba Inu?

More tokens on exchanges typically raise doubts about the long-term perspective of asset holders. As a result, more Shiba Inu deposits to exchanges hamper investor confidence, damaging sentiments in the short term.

Nonetheless, the daily inflow does not paint the whole picture. The chart shows that the Shiba Inu exchange reserve has been on a steady decline since May, dropping from around 90.5 trillion SHIB at the time to its current position.

This shows that while users deposited to exchanges over the past 24 hours, they have actually been moving to self-custody wallets in the larger timeframe. Notably, the data reestablishes the belief among holders in the asset despite glaring price underperformance.

Meanwhile, Shiba Inu continues to trade at a discounted price, exchanging hands at $0.00000995 at the time of writing. The token remains around the $0.000010 support, an area analysts suggest would spark a strong rebound if it continues to hold.

However, SHIB would have to reverse the current bearish trend for that to happen, as it is down over 7% in the past seven days and a staggering 18% over the past month. A recent report highlighted the level Shiba Inu must reclaim for a trend reversal to bullish price actions.