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Over the course of the last 24 hours, Shiba Inu recorded gross exchange inflows of about 2.4 trillion SHIB as its price abruptly increased from about $0.0000042 to $0.0000054. Nevertheless, the information does not indicate that a single identifiable whale made the full deposit.
Exchange wallets receive inflows
It shows total transfers into tracked exchange wallets, most likely the result of traders, market makers, and large holders shifting positions during the rally. Differentiating between inflow and netflow is crucial. Approximately 2.376 trillion tokens simultaneously left trading platforms, despite exchanges receiving about 2.399 trillion SHIB. As a result, netflow was only around 22.6 billion SHIB.
Therefore, rather than 2 trillion tokens of additional sell-side supply, the headline figure shows strong two-way movement. Because of this, SHIB's price response is more important. Buyers absorbed the available supply and drove the token through its short-term moving averages in spite of the high deposits.
The daily chart displays a test of the 200-day average near $0.0000050 after a volume-backed breakout above the 50-day and 100-day averages. Strong momentum was confirmed by the RSI surge above 78, which also suggested overheated short-term conditions. South Korean retail activity is one of the primary catalysts, according to market reports that are currently available.
Crypto Briefing noted that activity on Upbit had previously become comparable to Binance and attributed a large portion of the rally to unusually high demand from Korean traders. Recent whale accumulation was also noted as a contributing factor in the report. A limited supply of liquid tokens could have intensified the action. Centralized exchange reserves have dropped to about 86.1 trillion SHIB, a historical low, according to CoinMarketCap's market summary.
What caused the spike?
A sudden spike in demand may result in a disproportionately large price response when fewer tokens are still easily accessible for trading. Increased burn activity and a resurgence of interest in Shibarium are additional secondary factors. Prior to the breakout, SHIB's burn rate had risen, and network activity was also improving. Nevertheless, a double-digit daily rally cannot be explained by the amount burned alone because it is still too small in comparison to the circulating supply.
Whale positioning, decreased exchange liquidity, short covering after SHIB broke technical resistance, and Korean-led speculative demand are therefore the most likely explanations. As of right now, there is no solid proof that a single entity caused the entire inflow. The same exchange activity now carries risk.
High gross inflows indicate that holders have transferred a significant amount of inventory into positions that can be traded right away. Profit-taking may occur soon unless demand stays high, especially since the RSI is already getting close to overbought.
Dan Burgin
U.Today Editorial Team
