Shiba Inu Exchange Balances Reach New Low As SHIB Bounces Off Golden Ratio
25 April 2024 - 8:00AM
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The Shiba Inu ecosystem has been subjected to updates in the last
few days as developers look to bolster the cryptocurrency’s
prospects in the long term. Behind the scenes, on-chain data also
reveals a bullish trend among SHIB investors, with the exchange
balance dropping to new lows. Adding to the bullish case is
the fact that SHIB’s price has bounced right off the key 0.618
Fibonacci ratio level, otherwise known as the “golden ratio.” These
metrics, in combination, are particularly setting up the stage for
a price surge that could see SHIB surging in the current market
cycle. Exchange Balances For SHIB Hit New Lows According to
CryptoQuant’s SHIB analytics dashboard, the total SHIB reserve on
crypto exchanges has been on a free fall for the majority of this
year. At the time of writing, the SHIB exchange reserve now
stands at around 150 trillion tokens, compared to 164 trillion SHIB
tokens on February 29. This means the total number of SHIB tokens
in crypto exchange reserves has fallen by 14 trillion SHIB in less
than two months. Related Reading: Analyst Says XRP Price Will Reach
$100, But This Needs To Happen First The drop in exchange reserve
is somewhat of a bullish indicator for SHIB, as it shows that
holders are less liable to sell their coins and are instead opting
instead to store them in private wallets. This outflow from
exchanges has particularly been compounded in the last few weeks,
with on-chain data revealing an increase in activity from Shiba Inu
whales. An example is a recent accumulation of 237.8 billion SHIB
tokens worth $6.9 million by a new whale address.
Furthermore, recent price action in recent months has seen the
price of SHIB bouncing off the 0.618 Fibonacci ratio level on April
14th, setting up the stage for a golden ratio rebound. This is a
key support level according to the Fibonacci tool, and the bounce
indicated the start of a major uptrend. SHIB encountered this
bounce on April 15 around the $0.00002117 price level after a
correction of over 51% from its yearly high of $0.00004400.
Shiba Inu To $0.0001? At the time of writing, SHIB was trading at
$0.00002702, up by 19% in the past seven days. Interestingly, the
SHIB price has increased by over 27% since its bounce above the
golden cross to confirm the crypto has fully reversed into a
bullish sentiment. Related Reading: XRP Wallets Holding At Least 1
Million Coins Nears All-Time High As Sentiment Improves
Fundamentals point to a continued SHIB price surge in the coming
days amid mainstream interest and adoption. One of these is the
recent $12 million investment raised by the Shiba Inu team to
develop a layer-3 blockchain on top of Shibarium. With supply on
exchanges diminishing and SHIB building surging after bouncing off
a key Fibonacci level, the ingredients are in place for a rebound
to $0.00004400 or higher. If SHIB can clear this resistance, it
opens up a run toward $0.00008616, which would represent a 218%
increase from today’s price. SHIB price sitting at $0.000026 |
Source: SHIBUSDT on Tradingview.com Featured image from Crypto News
Flash, chart from Tradingview.com
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