In the crypto space, the meme coin Shiba Inu has recently witnessed a significant decrease in token supply on exchanges. Accordingly, SHIB has reached its lowest level in the last six months, indicating a drop to 7.38% of the total SHIB supply. This decrease in exchange reserves is generally considered a bullish indicator for Shiba Inu’s price recovery.
Will Shiba Inu Gain Value Against the Dollar? Analysis of Exchange Supply Trends
According to Santiment’s data, Shiba Inu’s supply on exchanges, as a percentage of the total supply, dropped to 7.38% as of January 9. Six months ago, the equivalent figure was at 8.60%. This number signifies a notable decrease. The reduction in exchange reserves could play a significant role in Shiba Inu’s potential price recovery, as it implies a decrease in selling pressure on the cryptocurrency.
With fewer SHIB tokens available on exchanges, increased demand could make the possibility of a price recovery for the meme coin more pronounced.
Increase in Trading Volume: A Positive Indicator
Another encouraging on-chain metric for SHIB is the increase in trading volume. On Monday, the trading volume for SHIB reached its highest level in the last three weeks, totaling 12.1 trillion tokens. Rising trading volume is often associated with increased activity among market participants and growing demand for the cryptocurrency.
Currently, Shiba Inu’s price is positioned above its 200-day Exponential Moving Average (EMA) at $0.00000890. Resistance levels for SHIB’s price trajectory include the 10-day EMA at $0.00000975 and the 50-day EMA at $0.00000967. The first significant target for SHIB represents a potential 12.8% increase from the current price, corresponding to $0.00001048.
Optimism Surrounding Shiba Inu’s Recovery
The decrease in Shiba Inu’s supply on exchanges, combined with an increase in trading volume, paints an optimistic picture for the meme coin’s potential recovery.
Reduced selling pressure on exchanges and key price levels to watch indicate a favorable environment for SHIB enthusiasts. As market dynamics continue to evolve, monitoring these trends becomes increasingly important for making informed decisions in the ever-changing crypto landscape.
