Shiba Inu, the popular meme coin, has seen a significant decrease in its supply on exchanges recently. This indicator tracks the percentage of Shiba Inu coins held in centralized exchange wallets. The decrease in this metric suggests that investors are transferring their coins to self-custodial wallets, indicating a desire to hold onto them for longer periods. This accumulation of coins could potentially have a bullish effect on the cryptocurrency’s price.

Conversely, an increase in the indicator’s value could be seen as a bearish signal, as it may indicate that holders are depositing their coins on exchanges for selling purposes.

Recent data shows that the supply of Shiba Inu on exchanges has experienced a significant drawdown over the past month, with approximately 0.51% of the total circulating supply leaving these platforms. Interestingly, these withdrawals have coincided with a rally in the coin’s price, suggesting that they may be signs of buying from large investors known as “whales.”

Despite a notable decline in price since its local top, investors have not reacted negatively to the plunge, as withdrawals from exchanges continue to occur. While exchange outflows can have short-term effects on price, the trend of decreasing supply on exchanges can also indicate a more independent market, less controlled by large entities.

Overall, the decrease in Shiba Inu supply on exchanges is seen as a positive development, as it reduces the control of central entities over the coin’s supply. Currently, only 7.85% of the memecoin’s supply remains in the custody of these centralized entities.

In terms of price, Shiba Inu briefly crossed above the $0.00001000 level but has since dropped to $0.00000942.