Shiba Inu Revives a Bulling Mood According To A New Santiment Report
As the price of SHIB encounters strong resistance, on-chain data suggest a bullish picture.
Key Takeaways
- New on-chain data suggest investors are accumulating Shiba Inu.
- Token burning impacts the supply/demand equilibrium.
- Chart analysis points out a potential breakout.
Lucie, the SHIB team’s official social media marketing specialist, shared an optimistic view about Shiba Inu‘s future. This sentiment is based on a report by Santiment , an on-chain data aggregator.
The report noted that various altcoins, including Shiba Inu, are being withdrawn from exchanges in large volumes. The top 10 exchange wallets are losing significant amounts of cryptocurrency, with SHIB being one of them.
Shiba Inu Fundamentals
The top 10 blockchain wallets are currently holding over 177 trillion SHIB. These wallets have seen a reduction of $54.6 million worth of SHIB (over 5 trillion coins) due to withdrawals by large holders (nonexchange whales) over the past three months.
Market participants pay close attention to SHIB, especially as top wallets withdraw this coin from major cryptocurrency exchanges. This trend is often viewed as a bullish sign for the long-term prospects of these cryptocurrencies.
The Shiba Inu burn rate soared by 161,540% in the last 24 hours, with about 8.59 billion SHIB transferred to unspendable wallets. During a large scheduled burn event, the Shiba Inu team burned most of these coins.
Shytoshi Kusama, the lead developer of SHIB, confirmed plans for more significant burns. He emphasized the need for expanding the utility and adoption of Shibarium to make these burns more impactful.
SHIB Price Analysis
The price of SHIB has been in an uptrend since October 19 after hitting a higher low of $0.0000066. It reached $0.000011 at its highest point today, increasing by 78%. This came as a breakout from the descending resistance, which revisited the previous high, made on August 14.
The price encountered a significant horizontal resistance zone, but the outlook appears bullish. If we saw the start of the larger uptrend from October’s low, the current uprise is its wave 3, and there is still more room to go before it completes.
At its optimal point of 1.618 Fibonacci extension, it could come to $0.000015, which would be near February’s high and indicate an even further increase. But first, we need to see a decisive push to the upside, with the price going above its currently seen resistance around $0.00001.
If this breakout is made, the likelihood of another 40% rise would be much higher. Alternatively, if the price gets rejected, it could be sent down to retest the broken descending resistance level again around $0.000009.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
