Following the recent pullback in Shiba Inu’s price, on-chain data has revealed signs of weakening in the cryptocurrency’s fundamentals. According to data from the crypto analytics platform CryptoQuant, SHIB’s supply on exchanges has risen, alongside a positive net flow. This scenario indicates that selling pressure in the market might be intensifying.
SHIB Supply on Exchanges Climbs
CryptoQuant, renowned for monitoring blockchain data, especially exchange inflows and outflows to analyze investor behavior, has reported an increase in SHIB exchange netflow data above 288 billion SHIB. This trend suggests that the number of SHIB tokens entering exchanges now exceeds those exiting.
CryptoQuant data highlights that SHIB’s exchange net flow has surpassed 288 billion tokens, with total supply on exchanges rising again to the 88 trillion SHIB mark.
As of October 3rd, the available SHIB supply on all supported exchanges reached 88.076 trillion. This level represents the highest value recorded since the sharp fluctuations observed around June 3rd. Consequently, the SHIB reserves on exchanges have climbed to a four-month peak.
Impact on Price Dynamics
The increase in exchange supply is closely monitored during periods when investors move their assets from private wallets to exchange accounts for potential sale. The surge in SHIB supply has coincided with a period of slowing price movement, making the short-term outlook more fragile.
Shiba Inu has shed approximately 3% of its value in the past 24 hours. The timing of this price decline with the rise in exchange supply has accentuated evaluations that buying interest is dwindling, with sellers becoming more active.
Revisiting the 88 trillion SHIB level heightens concerns about sudden demand weakening and possible preparations for selling.
Market Indicators to Watch
Market participants are now keenly observing changes in exchange reserves and net flow data. Continued upward trends in these indicators could exert additional pressure on SHIB. Conversely, a decline in reserves might present a more balanced picture, hinting at a short-term alleviation of selling pressure.
Amid a general downward trend in the broader cryptocurrency market, SHIB data has made changes in investor behavior more noticeable. The current on-chain tableau suggests that a cautious stance might persist until a notable recovery in demand is observed.
