Ethereum
Shiba Inu mega-whales withdraw from trade: bullish?
Data shows that the largest exchange wallets Shiba Inu and Ethereum have recently suffered withdrawals, a sign that could be bullish for their prices.
Shiba Inu, Ethereum and Chainlink are among the coins seeing exchange outflows
As on-chain analytics company Santiment explains in a new job on X, the top 10 exchange wallets on the SHIB, ETH, and LINK networks have recently seen their supplies decline.
“Top 10 Exchange Wallets” refers to the ten largest wallets currently attached to centralized exchanges. Naturally, such large portfolios would belong to even the largest investors in the market. whales.
Typically, the influence of any address on the network increases as its holdings increase, so the top 10 exchange wallets would be among the most influential investors in the market. As such, the trend of their combined supply may be worth watching for any cryptocurrency.
Below is a chart that shows data from this metric for three of the industry’s top assets: Shiba Inu (SHIB), Ethereum (ETH), and Chainlink (LINK).
Looks like the value of the metric has been going down for each of these coins recently | Source: Santiment on X
As the chart above shows, the size of the top 10 exchange whales has recently decreased for all three cryptocurrencies. Most notably, since the end of May, Shiba Inu has seen this metric decline by 2.4%, Chainlink by 2.9%, and Ethereum by 8.6%.
Usually, buying from whales is a bullish sign for any asset, but here wallet sizes are decreasing instead. But in this case, the addresses in question are those linked to the stock exchanges and not self-custodial wallets.
Investors typically hold their coins on exchanges whenever they plan to trade them soon, so the coins present in the supply of these exchanges may represent the available sale supply of the asset.
As such, the recent drop in exchange supply for SHIB, LINK, and ETH implies that a potential reduction in selling pressure occurred for these markets.
Given that the wallets considered here are the ten largest associated with these platforms, the withdrawals may provide a particularly bullish signal, as they suggest that mega-whales may be interested in holding onto their coins for the long term.
From the chart, it is visible that Chainlink and Ethereum experienced rapid withdrawals from these large holders towards the end of May, and since then the metric has moved sideways for them.
On the other hand, Shiba Inu saw first a surge and then a few waves of releases, the latest of which happened in just the last week. So, it is possible that even though LINK and ETH whales appear to be finished with their withdrawals, SHIB exits are still underway.
SHIB Price
At the time of writing, Shiba Inu is trading around $0.0000216, down over 13% in the last seven days.
The price of the memecoin seems to have been going down over the past few days | Source: SHIBUSD on TradingView
Featured image of Dall-E, Santiment.net, chart from TradingView.com