Shiba Inu Exchange Reserves Climb to $929 Million as Market Sentiment Turns Bullish

Shiba Inu (SHIB) witnessed a remarkable spike in exchange reserves, reaching $929 million across major trading platforms within just 24 hours between June 22 and June 23. According to CryptoQuant, this rapid influx signals intensified market activity and heightened investor interest in the meme coin.

At the same time, Shiba Inu’s price climbed by 8.62%, rising to $0.00001170, as reported by CoinMarketCap. The upward trend in both reserves and price suggests increasing confidence and anticipation of further gains in the near term.

What Higher Exchange Reserves Mean for SHIB

A jump in exchange reserves typically signals greater availability of the token for trading. This can often precede high-volume moves and attract traders looking to capitalise on potential price swings. In SHIB’s case, the increase implies rising trust in the token and possible preparation for large-scale trades, especially in a bullish context.

Although the reserves reflect a strong market presence, the fact that many SHIB tokens remain on exchanges, rather than being withdrawn to private wallets, suggests that holders are preparing for trading activity rather than holding them for the long term.

Data from Coinglass paints a nuanced picture of SHIB’s market dynamics. While trading volume dipped by 10.38% to $193.03 million, open interest rose by 5.59% to reach $130.01 million. This combination often indicates a stabilising market with renewed investor engagement.

Notably, traders on Binance and OKX appear more bullish, as shown by their long position ratios of 1.0538 and 2.28, respectively. These figures suggest growing optimism among both retail and institutional participants.

Binance Leads in SHIB Inflows, Followed by Bybit and Coinbase

A 12-hour heatmap tracking net flows into major crypto exchanges highlights Binance as the leader, with $1.02 million in SHIB inflows. Bybit followed with $288.40K, and Coinbase came in third with $218.99K. Interestingly, OKX recorded $262.87K in green inflows, typically associated with long-term positioning rather than short-term speculation.

This shift in exchange behaviour could indicate changing market sentiment, especially as more investors position themselves for potential upside.

Burn Mechanism and Supply Update

Despite recent sell pressure reflected in on-chain indicators, Shiba Inu continues to reinforce its long-term value proposition through its deflationary burn mechanism. The circulating supply has dropped significantly, from an initial one quadrillion tokens to 589 trillion. This steady burn rate enhances scarcity and may support long-term price appreciation if demand continues to rise.

The sharp rise in SHIB exchange reserves, combined with a growing number of long positions and bullish sentiment on platforms like OKX and Binance, suggests the meme coin could be poised for a sustained rally. While technical pressure remains, the token’s price behaviour and deflationary fundamentals present a promising narrative for bullish investors in the weeks ahead.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.