Oct 20, 2024

6thTrade

Shiba Inu (SHIB), a popular meme coin, has been stirring excitement among its holders over the past 30 days. Despite facing tough market conditions in the last two quarters, SHIB has rallied by 30%, reaching its current price of $0.000019. Although the pace of this rally has slowed recently, the token’s recent price action could be a pivotal moment, hinting at further upward movement.

Let’s dive into the data, the potential for more gains, and why long-term holders are becoming more optimistic about SHIB’s future. $SHIB

16 Trillion SHIB Tokens Withdrawn from Exchanges

One of the key developments driving this optimism is the massive outflow of Shiba Inu tokens from exchanges. According to data from Glassnode, in the last seven days alone, SHIB holders withdrew over 16 trillion tokens, valued at approximately $288 million at current prices.

When large volumes of tokens are pulled from exchanges, the circulating supply available for trading diminishes. This decrease in liquidity can make the token more scarce, leading to potential price increases due to basic supply and demand principles. If this trend of exchange withdrawals continues, it could set SHIB up for even higher price gains, possibly reversing its recent minor 24-hour pullback.

Market Value to Realized Value (MVRV) Suggests a Bullish Shift

Another metric that supports the possibility of sustained price growth is the Market Value to Realized Value (MVRV) Long/Short Difference. This indicator compares the unrealized profits of long-term holders to those of short-term holders. When the MVRV Long/Short Difference rises, it signals that long-term holders are seeing more unrealized gains, which is generally a bullish indicator.

On September 26th, the MVRV Long/Short Difference stood at 33.44%, coinciding with SHIB’s price being $0.000014. However, as of now, this metric has shifted to -21.49%. While still in negative territory, the trend suggests that Shiba Inu is beginning to emerge from a predominantly bearish phase. If this metric continues to rise, it could be a sign that the token’s price is poised for further gains.

SHIB’s Technical Indicators Signal Strength

From a technical standpoint, Shiba Inu’s price action also shows promising signs of continued upward momentum. One key level to watch is the token’s psychological resistance. While SHIB is currently trading just below this barrier, a closer look at key indicators like the Bull Bear Power (BBP) and the Exponential Moving Averages (EMA) suggests that a breakthrough could be imminent.

The Bull Bear Power (BBP) measures the strength of buyers (bulls) versus sellers (bears). When the BBP is positive, bulls are in control. Currently, the BBP on SHIB’s daily chart is positive, indicating that buying pressure is stronger than selling pressure. This is further confirmed by the Exponential Moving Averages (EMA), where the 20 EMA (blue line) is above the 50 EMA (yellow line). When the shorter-term EMA crosses above the longer-term EMA, it signals a bullish trend, and this setup suggests that SHIB could soon break through its resistance level and continue its upward climb.

Could SHIB Hit Another 25% Rally?

Given these positive indicators, the question on every SHIB holder’s mind is whether the token can sustain this momentum. The answer lies in whether it can break through the current resistance level and maintain its bullish trend.

If the BBP continues to favor the bulls, and the EMA setup holds, Shiba Inu’s price could be on track for another 25% rally, potentially pushing the token to $0.000024. As more tokens leave exchanges and the market becomes more bullish, the conditions seem ripe for SHIB to capitalize on this momentum.

Conclusion: SHIB’s Path Forward

Shiba Inu’s recent price surge has captured the attention of meme coin enthusiasts, and the data shows that this might just be the beginning of a larger rally. With trillions of tokens being withdrawn from exchanges, bullish technical indicators, and a positive shift in long-term holder sentiment, SHIB’s price could be on the verge of another breakout.

For now, all eyes are on whether SHIB can break through its resistance levels and continue its upward trend. If the bulls remain in control, Shiba Inu might soon deliver another impressive price gain, cementing its place as one of the top meme coins in the market.

Images Credit : GLassnode , Santiment


Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile and can result in significant financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not necessarily reflect the opinions of the publisher or any affiliated parties. Investing in cryptocurrencies carries inherent risks, and past performance is not indicative of future results. Proceed with caution.