Shiba Inu (SHIB) Exchange Supply Drops as Price Aims to Stop 17% Decline

Key Takeaways

• Shiba Inu exchange supply has dropped to its lowest since 2021, indicating a possible price rally.
• Data shows that SHIB has strong support, around $0.000012, which could help break resistance.
• The technical outlook reveals that SHIB’s price might close in at $0.000020 in the short term.
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Shiba Inu (SHIB) supply on exchanges has dropped to the lowest level since April 2021. This decline comes despite SHIB’s price inability to rally for much of the year.

Typically, the drop in exchange supply should curb selling pressure. While that has not happened yet, it appears that the consolidation phase SHIB has been facing might soon end. Here is why.

SHIB Exchange Supply Hits Multi-Year Low

At the beginning of the year, SHIB’s supply on exchanges was 141.26 trillion. When the supply on exchanges increases, it indicates a vote of no-confidence on an asset’s price action as holders are willing to sell.

On the other hand, a decline means holders are pulling their holding off exchanges, which is a bullish sign. SHIB’s exchange supply has dropped to 106.96 trillion as of this writing.

This indicates that the selling pressure around SHIB is fading. If sustained, this could also ease SHIB’s price correction.

In the last 30 days, SHIB’s price has decreased by 17%, aligning with the broader market trend, which continues to face a dearth of liquidity.

Support Over Resistance

Besides the declining exchange supply, on-chain data from IntoTheBlock also agrees that the token might soon experience stability.

One indicator that supports this bias is the In/Out of Money Around Price (IOMAP). The IOMAP shows potential resistance and support levels, considering the volume of unrealized losses or profits.

The higher the volume of money, the stronger the support. Conversely, a higher volume of money indicates resistance.

At the time of writing, the major support for SHIB is around $0.000012. At this level, 23,200 addresses hold over 19 trillion tokens.

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This volume outweighs the major resistance of around $0.000015, where 10,680 addresses hold over 12 trillion SHIB in unrealized losses.

Due to this difference, SHIB’s price is likely to rise past $0.000015 in the short term and this could lead to a new monthly high.

SHIB Price Targets Higher Values

In addition, the 4-hour chart also shows that SHIB’s price is likely to erase a major part of the 17% correction. According to the image below, the Moving Average Convergence Divergence (MACD) reading has turned positive.

This indicates rising bullish momentum and is validated by the Exponential Moving Average (EMA). As of this writing, the 12 EMA (blue) has crossed above the 26 EMA (orange), indicating a potential uptrend.

If this remains the same, SHIB’s price might jump to the 0.618 Fibonacci level at $0.000017. If demand for the token increases, the price could reach $0.000020.

However, in a bearish scenario, SHIB might fail to reach the above levels. Instead, the value could sink to $0.000011.