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CoinDesk1 min read
552 Billion Shiba Inu (SHIB) Bleed: 100 EMA Resistance Losing Relevancy
TL;DR
Shiba Inu (SHIB) is in a transitional phase after a prolonged decline, with price structure and on-chain behavior starting to align. The price is gradually moving upward, approaching key moving averages.
Key points
- Shiba Inu is in a transitional phase after a decline
- Price structure and on-chain behavior are aligning
- Current price is moving upward towards moving averages
After a protracted decline, Shiba Inu is currently in a transitional phase where price structure and on-chain behavior are beginning to align.
Is it getting better for SHIB?
Months of consistent decline are depicted on the chart below, followed by a tightening range with the formation of higher lows. The price is currently slowly moving upward into the cluster of moving averages while compressing under declining resistance.
SHIB/USDT Chart by TradingView
Exchange flow data is one of the most important developments. There has been a massive outflow of 552 billion SHIB, which is part of a larger trend of tokens leaving exchanges. Hundreds of billions of SHIB have been removed from trading platforms in similar incidents in recent months, which lowers the supply available for quick selling. When that amount of liquidity leaves exchanges, it typically indicates that holders are moving toward holding or repositioning rather than preparing to sell.
This is significant because SHIB has been under constant pressure for a long period. The price has had difficulty recovering significant trend levels, and the 100 EMA has been a reliable ceiling. At the moment, that level is beginning to lose some of its power. The price keeps pushing against it, and resistance gets weaker with each test.
Breakout is still possible
An ascending triangle is visible in the current structure, which usually creates pressure for a breakout. At the same time, this change is supported by lower inflows. Because fewer users are sending tokens to exchanges to sell, exchange inflow metrics have been declining. This eliminates one of the primary causes of downward momentum and permits price stabilization.
The market is entering recovery mode if SHIB breaks above the 100 EMA and holds, opening the door to higher resistance zones. That move would be supported by outflows and decreased sell pressure. Continued compression within the current range is likely to occur if the breakout fails. That would postpone any more significant trend shift and prolong the accumulation phase.
Q&A
What does the current price trend of Shiba Inu (SHIB) indicate?
The current price trend of Shiba Inu indicates a potential upward movement as the price structure shows higher lows and aligns with on-chain behavior.
How has the 100 EMA resistance affected Shiba Inu (SHIB) recently?
The 100 EMA resistance is losing relevancy as Shiba Inu's price is compressing under declining resistance while attempting to move upward.
What are the key indicators for Shiba Inu's (SHIB) price recovery?
Key indicators for Shiba Inu's price recovery include the formation of higher lows and the price moving towards a cluster of moving averages.
