- Shiba Inu cryptocurrency exchange reserves dropped to early 2022 levels.
- Falling wedge pattern on SHIBโs daily charts marks a likely inflection point.
- Contrarily, one crypto brokerage firm pours 144B SHIB coins into Coinbase.
According to the latest on-chain data from CryptoQuant, the second largest meme coin asset, Shiba Inu (SHIB), is becoming scarce on cryptocurrency exchanges. SHIB reserves have plunged by a whopping 95 trillion since June 26, 2021, when they were at an all-time peak of 246 trillion tokens.
Are Slimming SHIB Exchange Reserves Bullish?
Moreover, Shiba Inuโs reserves have dramatically plunged this year, starting in late February 2024. The notable decrease can be ascribed to the rising demand for meme coins. March 2024 has gone down in cryptoโs history books as the most successful month for meme coins, with the cycle peak topping $56 billion at one point.
Depicted in blue, the shrinking exchange reserves now consist of approximately 151T. Large holders moved another 5T SHIB off exchanges from March 31, confirming the large holder sentiment surrounding the canine token. Shiba Inuโs transfers to self-custodial wallets indicate SHIB as a long-term investment and means of storage.
Falling Wedge Pattern Hints at Another Leg?
Meanwhile, Shiba Inu’s price performance produced a falling wedge pattern on the 1-day technical charts. Dami Defi on X spotted this and forecasted a 50% run potential if SHIB broke out. The sloping-down pattern depicted below can signal a positive price trend switch.
Usually developed over several months, falling wedges in crypto culminate in a bullish breakout when the crypto price convincingly exceeds the upper resistance line, supported by a strong increase in trading volume. Shiba Inu is trying to put the falling wedge pattern in effect with a slight increase of 1.5% to trade at $0.00002398.
Zooming out of the daily charts, the #12 seated Shiba Inu embarked on a 14.7% run over the past two weeks, bringing a 169% yearly return. For the falling wedge pattern to inspire another leg, Shiba Inuโs daily close is above $0.000024, as this narrow resistance line with 10.15T SHIB in 27.5K addresses presents a favorable setup due to fewer traders liable to sell their SHIB tokens.
On the Flipside
- While a tendency to withdraw SHIB from exchanges persists, some large holders are also doing the opposite.
- For instance, on May 15, 2024, cryptocurrency brokerage firm Cumberland deposited 144 billion SHIB tokens worth $3.3 million.
- Earlier, the crypto fund also deposited 50.36B SHIB coins into OKX, leaving just $45K worth of SHIB on balance.
Why This Matters
Besides estimating demand, exchange reserves can indicate whether holders of a cryptocurrency are seeking to trade the crypto or keep it as a long-term investment.
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