Shiba Inu’s exchange reserves plummet to 7.38%, signals potential bullish momentum
One of the biggest meme coins in cryptocurrency, Shiba Inu, has experienced a notable decrease in its token supply on exchanges over the past six months, dropping to 7.38 percent of the total SHIB supply.
It marked its lowest level since July 2023, signaling potential bullish momentum for its price recovery. Recent data indicates a surge in SHIB transaction volume, reaching its highest level in three weeks at 12.1 trillion tokens, reflecting increased market activity and demand.
SHIB is anticipated to encounter reduced selling pressure on exchanges, facilitating its rebound from the recent downturn. The exchange flow metric reveals continuous outflows of SHIB from exchange wallets in January.
Now, Shiba Inu’s price stands above its 200-day Exponential Moving Average (EMA) at $0.00000890, with the 10 and 50-day EMAs at $0.00000975 and $0.00000967, respectively, posing as immediate resistance levels in its upward trajectory.
The initial target for SHIB is the upper boundary of the Fair Value Gap (FVG) at $0.00001048, representing a potential 12.8% rally from its current price of $0.00000929.
A daily candlestick close above the FVG could propel Shiba Inu towards its second target, the lower boundary of the second FVG ($0.00001802 to $0.00001825).
Shiba Inu’s optimistic outlook
The simultaneous decline in Shiba Inu’s supply on exchanges, coupled with a surge in trading volume, presents a positive outlook for the meme coin’s potential recovery. With diminished selling pressure on exchanges and identified critical price levels, the environment appears favorable for SHIB enthusiasts.
As the crypto landscape undergoes ongoing changes, vigilantly observing these trends becomes crucial for making well-informed decisions.
The Shiba Inu trade volume has surpassed $100 million, and technical indicators are showing optimism. Shiba Inu is exhibiting upward trends across various timeframes, and a significant indicator is its $131 million 24-hour trading volume.
Technical indicators, as observed on Trading View charts, predominantly suggest a buy. Shiba Inu, having recently shed another zero and sustained its ascent, is poised for a promising future.
The cryptocurrency market has witnessed exciting developments recently, with the approaching Bitcoin Spot ETF filings contributing to increased market strength. Bitcoin reached a record high of $45,000, prompting scrutiny of its implications for Shiba Inu.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information