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Key Takeaways
What is the implication of SHIB inflows to Binance?
Typically, it points to selling pressure, but it could also be due to internal treasury moves.
What do the metrics show for Shiba Inu price trends?
Some metrics showed accumulation and buying pressure in recent weeks, hinting at bullishness.
In a post on CryptoQuant Insights, user CryptOnchain observed that Shiba Inu [SHIB] reserves surged to 1 trillion tokens on the popular exchange Binance.
The Binance SHIB reserves jumped from roughly 400 billion tokens to 1 trillion, making it the largest SHIB holder among both centralized and decentralized exchanges.
Generally, large inflows point to an imminent wave of selling.
The scale of Binance’s holdings highlights the exchange’s role in SHIB liquidity, and could have been a result of user deposits or internal treasury moves.
It showed that Binance is the exchange to watch when gauging exchange-related metrics.
The exchange netflows metric was worrisome. September has been dominated by SHIB inflows, with only four days in the month seeing negative flows from Binance. The 14-day Moving Average has been positive for a week.
Together, the metrics showed that there was a threat of profit-taking activity. This comes during and just after the 17.9% price rally that took SHIB to $0.00001429, just above the local resistance zone at $0.000014.
Since this move, Shiba Inu has been forced to retreat 7.5%. Should traders expect another 10% price dip, or await a recovery?
Shiba Inu metrics and price action suggest bullishness
The Santiment data showed a rising Mean Coin Age since early August and a relatively docile dormant circulation over the past month.
There was some token movement as SHIB approached the $0.000014 resistance in the second week of September.
The Weighted Sentiment, which reflected the shade of social media engagement, was negative. Therefore, it was likely a good time to buy SHIB.
The rising meancoin age showed steady accumulation, and the lack of social media hype could help buy before the rally begins.
Source: SHIB/USDT on TradingView
The price action showed a SHIB rejection from the $0.000014 resistance, and the price retested the mid-range support (purple) at $0.00001327.
Shiba Inu has traded within this range since February, and the mid-range level is a crucial support.
The technical indicators were bullish – the CMF and the A/D volume indicators pointed to heavy buying pressure in recent weeks. The Awesome Oscillator indicated a slightly weakened momentum on the daily timeframe.
Overall, if the $0.000013 demand zone is defended over the weekend, Shiba Inu traders could look to go long.
The Bitcoin [BTC] price action could also influence SHIB- watch out for a BTC move past $117.5k to add confidence to a bullish move for the memecoin.
