- Shiba Inu investors are gradually shifting to exchange-based custody.
- The shift indicates that the sell pressure is mounting for Shiba Inu (SHIB).
- SHIB burn rate crashed 99% in the past 24 hours as well.
Shiba Inu (SHIB), the second-largest meme coin by market cap ($10.72 billion), could become volatile as investors move their tokens from self-custody to exchanges. This suggests that selling pressure is building.
According to the data from CryptoQuant, the net inflow of SHIB to exchanges has surged. This means investors are sending their tokens to exchanges rather than holding them in their wallets, which could lead to increased volatility as selling pressure builds.
Bullish Factors for Shiba Inu
Despite this bearish signal, there are also bullish signs for Shiba Inu. First, Shibarium, Shiba Inu’s layer-2 scaling solution, has seen a significant increase in daily transactions, jumping from 28,110 on October 18th to 324,590 on October 19th. As of October 21st, transactions on Shibarium stand at 128,000, and the platform boasts over 1.8 million wallet addresses.
Read more : Shiba Inu Burn Rate Surges 14,575%, SHIB Price Jumps on Token Scarcity
Another bullish factor is SHIB’s increasing burn rate. According to Shibburn, the Shiba Inu burn rate has dropped by 99.68% in the past 24 hours, with only 21,205 tokens burned. However, approximately 50% of the project’s total max supply has already been burned.
As more tokens are burned, the supply decreases, which could lead to higher prices if demand remains constant. With several upcoming events and projects on the SHIB roadmap, demand is expected to increase in the future.
Shiba Inu Price Analysis
At the time of writing, Shiba Inu is trading at 0.00001822%, down almost 4% in the past 24 hours and 79.1% from its all-time high of $0.00008845 witnessed during the previous bull run in 2021.
The Relative Strength Index (RSI) reads a value of 55.14 which means that the bulls are currently in control. However, the gradient of the line suggests that lower prices are possible in the near future.
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