Shiba Inu Records Decline In Exchange Supply Since November
Meme coin Shiba Inu [SHIB] has witnessed a significant removal of tokens from cryptocurrency exchanges since November. On-chain data obtained from Glassnode showed that a staggering 8 trillion SHIB tokens, worth roughly $88 million, have been withdrawn from known crypto exchange wallets since then.
At press time, 160 billion SHIB tokens were held on crypto exchanges, according to data from Glassnode.
Shiba Inu Balance on Exchangest (Source: Glassnode)
It may be said that SHIB investors have increasingly moved their tokens off exchanges and into personal wallets due to growing confidence in the coin’s long-term potential. This could have been driven by developments like the launch of the Shiba Inu Layer 2 platform Shibarium and the plans to introduce .shib domain names.
Price volatility sees a decline
Mirroring the general growth in the crypto market in the last month, SHIB’s value has climbed by double digits in the last 30 days. At press time, the altcoin exchanged hands at $0.000010.
As the price rallied, the market became significantly volatile. Between December 1 and 16, SHIB’s key volatility markers trended upward, suggesting that the altcoin’s price was prone to price swings.
SHIB/USD 24-Hour Chart (Source: TradingView)
However, as SHIB accumulation lost its steam, price volatility began to reduce. Readings from the token’s movements on a 24-hour chart showed that volatility indicators that had trended upward in the first 16 days of the month, began to dip on 17 December.
For example, the token’s Average True Range (ATR) – which measures market volatility by calculating the average range between high and low prices over a specified number of periods – has since fallen by 12%.
Likewise, its Chaikin Volatility was -3.92 at the time of writing. It has declined by 103% in the last week. This indicator measures market volatility by combining an asset’s price and traders’ accumulation and distribution patterns.
Further, SHIB’s Bollinger Bandwidth (BBW)- which measures market volatility by calculating the difference between the upper and lower bands of the Bollinger Bands indicator, has dipped by 37% since 17 December.
A decline in an asset’s BBW indicates decreased volatility. The narrower the gap between the bands gets, the more SHIB’s price would consolidate within a tighter range. This has been the case in the last week, with SHIB’s price oscillating between the $0.0000106 and $0.0000109 price points.
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