Over the last 24 hours, a massive 78,376,043,384 SHIB has been added to the Shiba Inu reserve across all exchanges, according to data from on-chain analytics platform Cryptoquant.
The metric, which often signals increased selling pressure as it suggests that traders are returning their holdings to exchanges in a move to sell them off, has raised questions about SHIB’s next price action despite its ongoing resurgence.
Why are SHIB holders selling?
The data shows a mild surge of 0.06% in SHIB’s exchange reserve from the 81,815,068,028,614 it recorded yesterday to a high of 81,893,444,071,998 as of Nov. 15.
While an increase in the all-exchange reserve of a token is a strong indication of heightening selling pressure, the surge has raised concerns among investors.
Notably, the bearish movement in the SHIB all-exchange reserve comes as a surprise as it has coincided with a mild resurgence in the price of the asset, triggering questions about the motives behind the increasing selling activity.
Over the last day, data from CoinMarketCap shows that SHIB has surged decently by 1.67%, trading at $0.000009315 as of press time.
While the past week has seen SHIB trade majorly in the red territory, with its price showing a notable decline of nearly 8% over the last seven days, it appears that traders have attempted to sell off their holdings amid the slight resurgence witnessed in the past day to quickly take profits before the next price dip.
While momentum is gradually returning to the SHIB ecosystem with recent metrics like the persisting increases in Shibarium transactions, consistently signaling a potential price rally, this negative trend in its exchange reserve does not mark the end for Shiba Inu.
It appears that traders are only taking caution amid rising uncertainty. However, all hope is not lost on the asset as recent metrics suggest the asset is preparing for a big price move.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team