Blockchain data shows that Shiba Inu has recently seen significant withdrawals from cryptocurrency exchanges.
Usually, this is a positive sign for the price of Shiba Inu (SHIB), especially since it has been able to break through a strong resistance barrier in the past weeks.
Large amounts of Shiba Inu have been withdrawn from cryptocurrency exchanges since November
Analyst Ali (@ali_charts) noted in a tweet on the X platform that large amounts of Shiba Inu have been withdrawn from cryptocurrency exchanges since November.
The key metric here is the “balance on exchanges”, which tracks the total amount of Shiba Inu held in the wallets of all central exchanges.
The “Balance on Exchanges” indicator is used in the cryptocurrency market to measure the amount of cryptocurrency that is currently in wallets on digital exchanges.
This indicator represents the total amount of cryptocurrency held by exchanges that can be traded on exchanges.
When the balance indicator on exchanges rises, this indicates that there is an increase in the amount of cryptocurrency on the exchanges.
This could be a signal that investors are depositing cryptocurrency on exchanges for selling.
In this case, this could be an indicator of the cryptocurrency price trend to decline.
As the supply on the exchanges increases, this may lead to negative fluctuations in the price.
If there is an increase in the amount of currency on the platforms, i.e. “increasing the balance on the platforms”. This may indicate that investors intend to sell the currency.
This can lead to increased selling pressure and lower prices.
On the other hand, if there is a decrease in the balance. This could mean investors withdrawing coins from exchanges to hold them for the long term.
Which may indicate positive market expectations and a potential rise in prices.
Another important point is that a decrease in the volume of liquidity traded can lead to an increase in the severity of fluctuations in the price.
Whales are preparing for a bull run next year
As shown in the attached chart, Shiba Inu’s stock on exchanges has undergone a significant decline since the first half of November.
Investors have withdrawn approximately 8 trillion SHIB tokens from these platforms, worth approximately $86 million at the current exchange rate.
Given the large volume towed, entities as large as whales were likely involved.
Therefore, their goal may be collection and storage.
This was accompanied by an increase in the price of the SHIB currency by more than 30% since the beginning of the withdrawals.
It is noteworthy that the gauge has not reversed its trend even after all this recent uptrend.
This indicates that whales are not yet ready to sell and make profits, but rather are interested in buying more meme currency.
Bracing for a potential bull run next year, as the market continues to monitor approvals of Bitcoin exchange-traded funds (ETFs).
Many believe that it may lead to the influx of large amounts of institutional capital into the entire cryptocurrency market.
