Shiba Inu has continued to raise doubts among traders following consistent rejection of expected breakouts. While its price has remained on the downside, crucial on-chain data provided by CryptoQuant suggests there’s still hope for a breakout soon.
The data shows that a massive 84,734,500,000,000 SHIB are currently held across all crypto exchanges as of September 25, a decent decline from the reserve recorded the previous day.
What does this mean for SHIB?
The massive 84.7345 trillion SHIB that is currently held in exchange reserves is flashing a positive sign, despite the 5% decline being witnessed in the price of the asset.
While exchange reserves basically measure an asset’s liquidity and accessibility, they also play crucial roles in predicting an asset’s potential price action.
According to the data, the total number of SHIB held in all supported crypto exchanges has reduced to 84.7345 trillion, suggesting that traders have become more interested in withdrawing their tokens off exchanges during the period.
Notably, a decline in the value of a crypto asset in reserve indicates lesser selling pressure, which implies growing confidence in the potential price action of the concerned asset. While SHIB has continued to plunge hard, the decreasing reserve shows that traders are increasingly buying off the tokens from the exchanges into cold storage amid surging interest to hold the assets on a long-term basis.
While the declining metric also spans across all derivative exchanges offering SHIB-related options, the decline in the reserve of the derivative exchanges may not directly predict SHIB’s price potential, as traders might be opening both long and short positions. Meanwhile, a rise in reserves across derivatives exchanges would have predicted high price volatility for the token.
Nonetheless, the Shiba Inu momentum has continued to fade, despite the hype surrounding its community engagement. Its recent price action, which saw its price fall as low as $0.00001156, has wiped out gains for short-term traders, while long-term holders appear to be struggling to retain resilience.
With SHIB’s recent on-chain metrics suggesting that bears are taking over its ecosystem, investors are gradually losing optimism, and the possibility of the asset removing another zero is currently threatened.
Nonetheless, a potential breakout in the price of the asset is expected to restore momentum. While a SHIB exec has recently explained that the asset is ready for an ETF review, investors are still confident that SHIB might return to the spotlight soon.
