- Shiba Inu supply on exchanges has declined to its lowest level in six months, at 7.38% of the total SHIB supply.
- Shiba Inu’s trade volume climbed to its highest level in nearly three weeks, at 12.1 trillion SHIB tokens on Monday.
- SHIB price is likely to rally to $0.00001048 in its recovery.
Shiba Inu, one of the largest meme coins in the crypto ecosystem, has noted a decline in its token supply on exchanges in the past six months. SHIB supply on exchanges hit its lowest level since July 2023 and typically this is considered a bullish sign for Shiba Inu price recovery.
At the time of writing, SHIB price is $0.00000929 on Binance.
Shiba Inu exchange supply drops to record low on six-month timeframe
According to data from crypto intelligence tracker Santiment, Shiba Inu supply on exchanges as a percentage of the asset’s total supply is down to 7.38% on January 9. Six months ago, 8.60% of SHIB’s total supply was sitting in exchange wallets. This decline is key to Shiba Inu’s price recovery thesis since a drop in exchange reserves is typical of a price rise in an asset, since the selling pressure on the cryptocurrency drops.
SHIB is therefore expected to face less selling pressure on exchanges, allowing the meme coin to recover from its recent decline.
The exchange flow metric shows consistent outflows of SHIB from exchange wallets throughout January 2024.
SHIB supply on exchanges and exchange flow. Source: Santiment.
Another on-chain metric that is likely to catalyze SHIB gains is the trade volume. As of Monday, SHIB transaction volume hit its highest level in three weeks, 12.1 trillion tokens. Rising volume is typical of increasing activity in the asset and it likely reflects the demand for the cryptocurrency among market participants.
Shiba Inu transaction volume. Source: Santiment.
SHIB price likely ready for recovery rally
Shiba Inu price is currently above its 200-day Exponential Moving Average (EMA) at $0.00000890. The 10 and 50-day EMAs at $0.00000975 and $0.00000967, respectively, are likely to act as immediate resistances for SHIB price in its uptrend. The Fair Value Gap’s upper boundary at $0.00001048 is the first target for SHIB. This represents a 12.8% rally from the current price of $0.00000929.
If Shiba Inu price sees a daily candlestick close above the FVG and sustains its gains, the second target is the lower boundary of the second FVG ($0.00001802 to $0.00001825).
SHIB/USDT 1-day chart
A daily candlestick close below the 200-day EMA could invalidate the bullish thesis for Shiba Inu.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.