Shiba Inu (SHIB) Could Become Volatile as Investors Move Tokens from Self-Custody to Exchanges, Threatening a Price Drop

Shiba Inu (SHIB), the second-largest meme coin by market cap ($10.72 billion), could become volatile as investors move their tokens from self-custody to exchanges.

Shiba Inu (SHIB), the second-largest meme coin by market capitalization ($10.72 billion), might experience increased volatility as investors move their tokens from self-custody to exchanges, indicating building selling pressure.

According to data from CryptoQuant, the net SHIB flow to exchanges has surged, indicating that investors are sending their tokens to exchanges rather than keeping them in their wallets. This could lead to higher volatility as selling pressure builds.

Shiba Inu Bullish Points HighlightedShiba Inu’s layer-2 scaling solution, Shibarium, has seen a significant rise in daily transactions, jumping from 28,110 on October 18 to 324,590 on October 19. As of October 21, transactions on Shibarium are recorded at 128,000, with the platform boasting over 1.8 million wallet addresses.

Additionally, SHIB’s burn rate has dropped by 99.68% in the last 24 hours, with only 21,205 tokens burned, according to Shibburn. However, it’s important to note that around 50% of the project’s total max supply has already been burned.

As more tokens are burned, the supply decreases, which could lead to higher prices if demand remains constant. With several upcoming events and projects on the SHIB roadmap, demand is expected to increase in the future.

Shiba Inu Price Analysis At the time of writing, Shiba Inu is trading at 0.00001822, down almost 4% in the past 24 hours and 79.1% from its all-time high of $0.00008845 during the last bull run in 2021.

The Relative Strength Index (RSI) is at 55.14, indicating that the bulls are currently in control. However, the gradient of the line suggests that lower prices may be possible in the near future.

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