On-chain data shows that Shiba Inu whales have been making significant outflows from exchanges recently, which could be a bullish sign for the Shiba Inu price.
Large Shiba Inu exchange wallets have recently lost their supply
In new mail In X, on-chain analytics firm Santiment discussed the trend that is forming in Shiba Inu whales. The analytics firm divided these giant holders into two groups: exchange whales and non-exchange whales.
Exchange whales refer to the top 150 wallets on the network that are connected to a centralized exchange. Similarly, non-exchange whales are the top 150 self-custodial wallets.
Below is a chart published by Santiment, showing how the total supply held by these groups has changed over the past few months.
The two metrics appear to have gone opposite ways in recent weeks | Source: Santiment on X
As shown in the chart above, the top 150 exchange wallets have seen a sharp drop in supply recently. More specifically, exchange whales now hold 5.53 trillion fewer memecoin tokens than they did about a month ago.
It appears that the Shiba Inu whales have absorbed these coins as their holdings have grown by about 6.57 trillion Shiba Inu within the same window.
Since this amount is larger than the withdrawals from the top 150 exchange wallets, it may appear as if these self-conscious investors also picked up some coins from smaller hands.
Generally, investors hold their coins on exchanges when they plan to participate in trading soon. Therefore, the supply on exchanges can be viewed as the supply of Shiba Inu available for sale.
Therefore, the recent trend of exchange whales losing coins to investors who plan to hold them for the long term could be a positive development for SHIB.
The timing of these outflows may be particularly catalytic, as they came at a time when the price of memecoin was trending lower. The accumulation naturally shows that whales believe that recent declines have been profitable entry points into the asset.
It remains to be seen whether the confidence of these giant holders will pay off and whether SHIB will finally break out of its downtrend to start a new bullish wave.
Ship price
Last month was a bad time for crypto investors, and SHIB holders were no different as the price of memecoin dropped by around 28% in that period, now trading at around $0.00001639.
The chart below shows the Shiba Inu’s trajectory over the past 30 days.
Looks like the price of the coin has observed a decline over the last few weeks | Source: SHIBUSD on TradingView
Featured image by Dall-E, Santiment.net, chart by TradingView.com