The price movement of Shiba Inu (SHIB) over the past 30 days has generated notable reactions from meme coin holders. If this movement continues, it could play a crucial role in the price increase of the token, which has struggled over the past two quarters.
SHIB's current price is $0.000019, a 30% increase during the mentioned period. However, despite the recent slowdown in the uptrend, the rally may not be over yet.
16 Trillion SHIB Tokens Withdrawn from Exchanges
According to data from the on-chain data analysis platform Glassnode, SHIB holders have withdrawn 16 trillion tokens from exchanges over the past 7 days. At the current price, this amounts to approximately $288 million.
The withdrawal of large amounts of cryptocurrency from exchanges reduces the circulating supply available for trading on those platforms. This can particularly increase the scarcity of popular coins or those with large liquidity.
In most cases, this can lead to the potential for price increases due to the basic principles of supply and demand. Therefore, if the exchange outflows continue to increase, SHIB's price could erase the slight 24-hour decline and move higher.
Read more: Dogecoin (DOGE) vs. Shiba Inu (SHIB): What's the Difference?
Another indicator supporting this sustained rebound is the difference between the market value and realized value (MVRV) in the short and long term. An increase in the MVRV short-term and long-term difference indicates that long-term holders have more unrealized gains than short-term holders, which is generally a positive signal.
Conversely, a decline in the indicator usually represents a bearish market situation. On September 26, the indicator was 33.44%, which coincided with a SHIB price of $0.000014.
However, at the time of writing, the MVRV short-term and long-term difference has risen to -21.49%, suggesting that the meme coin is slowly emerging from a largely bearish phase. If this indicator continues to rise, Shiba Inu's price could also follow suit.
SHIB Price Prediction: Potential for an Additional 25% Increase
Currently, SHIB is trading just below a psychological resistance level. However, looking at the 'Bull & Bear Power' (BBP) indicator, this metric measures the accumulation or distribution levels, suggesting the token could overcome the obstacle.
The BBP indicator measures the strength of buyers (Bulls) and sellers (Bears). When the indicator is negative, sellers are dominant. On the daily chart, the BBP is positive, indicating that the Bulls are in control.
This is further reinforced by the Exponential Moving Average (EMA). As can be seen below, the 20 EMA (blue) is above the 50 EMA (yellow), indicating an uptrend. If this trend continues, SHIB's price could rise to $0.000024.
Read more: How to Buy Shiba Inu (SHIB) - Everything You Need to Know
