SHIB Reserve On Binance Jump to 61.8T Triggers Sell-Off Fear

Binance’s SHIB exchange reserves just hit 61.8 trillion tokens. According to CryptoQuant, this big jump started somewhere around mid-March and kept climbing. On-chain charts show reserve line shooting up while price wiggles around.

In crypto, more tokens on exchanges usually means trouble. When holders move their tokens from safe wallets to trade spots, it usually points to sell-offs or profit takings. Even with price ups and downs, this huge pile could block rallies.

More Holders Join SHIB Fast

At the same time, there’s  a more optimistic trend developing. Data from Etherscan show that SHIB has added more than 10,000 new wallet holders from April 19 to April 22.

This increase is a clear indication of growing retail interest. As the holders increase, it usually means that there is a strong adoption of the token within the market. It also reflects that new participants are entering the market, possibly attracted by recent developments around the token.

This rise in holders has also aligned itself with a weekly gain of more than 7%, showing that demand has not disappeared even though the selling pressure looms.

ETF Inclusion Adds Institutional Angle

The other catalyst that has added to this uptick is SHIB’s inclusion in KrakenShares Coinbase 50 Index ETF. This is important because being a part of an ETF shifts SHIB’s image from a community-driven memecoin to an asset that institutional investors can access more easily.

The inclusion also opens the door to new capital flows from entities like funds and asset managers. It also provides a layer of credibility that SHIB never had before.

Conflicting On-Chain Signals

Moreover, not all supply-related data is negative. As Binance reserves of SHIB increased, there was an outflow of around 86 billion SHIB from exchanges..

This indicates that some investors are still accumulating the moving tokens into private wallets. So the market is currently split between those preparing to sell and those positioning for a longer-term hold. This kind of split usually leads to a market that is choppy and that is exactly what SHIB is currently showing.

Price Action and Key Levels to Watch

At press time, the price of SHIB token SHIB1.41% stands at $0.000006199 with an uptick of 1.9% in the last 24-hours as per CoinMarketCap. With these gains, the token is outperforming the broader crypto market that is up by 0.4% in the last 24-hours as per CoinGecko.

Looking ahead, the resistance level sits near the $0.0000065 mark. If SHIB manages to break and hold above this level with strong volume, it could signal further upside.

On the downside, $0.0000060 is acting as immediate support. If the price of the token drops below this level, then it may push the token back into consolidation phase.

Market Outlook: Cautiously Bullish

SHIB’s outlook sits somewhere in the middle. On one hand, ETF inclusion and rising holder count are strong positives. On the other, the massive build-up of tokens on Binance cannot be ignored. The market is trying to strike a balance between accumulating and potential distribution.

If institutional demand continues and buying volume increases, SHIB could push higher. But if larger holders begin offloading their exchange-held tokens, the price could face short-term pressure.

For traders, this is a moment to stay alert. The next move will likely depend on whether demand can absorb the growing supply waiting on exchanges.

Also Read: DJ Steve Aoki Dumps SHIB and ETH, Holds Firm on BAYC NFTs