Top meme coin Shiba Inu (SHIB) has surged over the past week, inching closer to its one-month high target of $0.00001408. 

However, fresh on-chain signals suggest the momentum may not last, as market participants appear to be taking advantage of the surge to offload their holdings for quick gains.

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SHIB Climbs, But On-Chain Data Points to Rising Sell Pressure

According to data from Glassnode, SHIB’s exchange balances have skyrocketed in the past week, hitting a 30-day high of 156.47 trillion on September 11. 

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Exchange balance refers to the total number of tokens held in centralized trading platforms. When these balances spike during a price rally, it signals that holders are moving their tokens from private wallets to exchanges, intending to sell. 

Therefore, SHIB’s sharp increase in exchange supply over the past few days suggests that traders are capitalizing on the recent upswing to lock in profits. The heightened selling pressure could prevent the meme coin from maintaining its rally and make a near-term pullback more likely.

Moreover, whale activity around SHIB has noticeably slowed, according to Nansen. Information from the on-chain data provider rev

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Author: Abiodun Oladokun