Traders continue to act dynamically as a massive 1.67 Trillion Shiba Inu (SHIB) tokens were pulled from exchanges in the past day.
This is the largest withdrawal since last year when Shiba Inu’s price soared by 62% shortly after similar activity.
An analysis of the exchange outflow chart reveals that such spikes in withdrawal often precede notable price movements, indicating investor intent to hold rather than sell. Subsequently, the sell-side pressure is likely to drop.
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This sharp increase in token withdrawals aligned with a short but intense peak, mirroring the previous pattern that led to a substantial SHIB price surge as Ali noted.
If historical patterns hold true, this mass movement of tokens off exchanges could indicate confidence among Shiba Inu holders, potentially triggering another rally.
The chart further showed a decline in exchange outflows right after the spike. This suggests that the initial rush to withdraw has stabilized.
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Such withdrawal activities often signal anticipatory behavior among investors ahead of expected positive developments or to avoid potential price drops.
These tokens are moving into personal wallets. Consequently, the reduced circulation supply on exchanges could pave the way for price appreciation if buying pressure continues.
Shiba Inu Cup and Handle Pattern
The SHIB/USD price action chart on the 4-hour timeframe presented a classic cup and handle formation, hinting at a potential breakout.
Following the significant amount of SHIB withdrawal from exchanges, indicating that holders were moving their tokens to cold storage, a signaled growing confidence among investors.
This shift has often been a precursor to upward price movements as market supply tightens.
This specific pattern began forming in early October, with the “cup” part of the formation lasting until late November.
The “handle” part, characterized by a slight downward trend in price, followed but remained within expected limits, suggesting consolidation rather than a reversal.
Technical indicators showed increasing trading volumes as the price ascends from the handle, underscoring bullish sentiments.
Moreover, the Relative Strength Index (RSI) remained neutral, avoiding overbought conditions despite the rising price, which supports a healthy uptrend continuation.
If Shiba Inu maintains its trajectory above the handle’s resistance line, a sharp price increase could follow. That would replicate previous rallies triggered by similar trading patterns and investor behaviors.
SHIB MVRV Z-score
Shiba Inu‘s MVRV Z-Score moved above the neutral line, which has indicated potential for increased price valuation.
This upward trajectory followed a massive burn rate surge of 940%, highlighting a reduction in supply that typically fosters price increases.
The price of SHIB approached a critical resistance level at $0.000025, where about 40,000 addresses previously purchased a total of 54.6 Trillion SHIB.
The persistence of SHIB’s price above this level suggested a strong buy sentiment in the market, potentially setting the stage for a push towards the next significant resistance at $0.000039.
This bullish outlook is supported by a well-formed cup and handle pattern. It a traditional signal of bullish continuation.
If Shiba Inu breaks past its immediate resistance, it could see substantial future gains, reaffirming optimism among investors and traders
Disclaimer
The information provided in this article is only for educational and informational purposes and should not be considered financial or investment advice. We are not licensed financial advisors. Always conduct your research and seek guidance from a certified financial professional before making any investment decisions.
