- SHIB surges 4%, with 300 billion tokens leaving exchanges fast.
- Token outflows signal bullish momentum, fewer SHIB available for trading.
- SHIB tests key resistance levels, eyeing further price gains ahead.
Shiba Inu (SHIB) has taken the market by surprise, experiencing a 4% surge as it pushes past the $0.0000123 level. This unexpected rally comes after a dramatic outflow of 300 billion SHIB tokens from centralized exchanges over the past 48 hours, according to on-chain data.
The large outflow of SHIB tokens from exchanges is often seen as a bullish signal. With fewer tokens available on exchanges, the potential for selling pressure decreases, indicating that holders may be moving their assets to cold storage or decentralized finance (DeFi) platforms.
This reduction in exchange reserves typically leads to increased volatility and higher prices when demand spikes. Traders have taken notice of SHIB’s recent breakout, which followed a period of consolidation between the $0.0000114-$0.0000119 range.
The token’s price surge was accompanied by rising trading volume and expanding green candles, confirming the momentum. The market appears to be setting up for further upside, with SHIB testing key resistance levels.
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Resistance Levels Under Pressure: Can SHIB Maintain Its Momentum?
Currently, SHIB is facing important overhead resistance between $0.0000124 and $0.0000127. This price zone aligns with a larger descending channel, making it a critical area for bulls to defend. If SHIB can break through these resistance levels, it could pave the way for even higher price targets.
The token’s price action suggests that it is validating its breakout attempt, and traders are eager to see if it can maintain this bullish momentum.
Source: Tradingview
The outflow of tokens from exchanges also points to whale activity, as large holders move their SHIB assets into more secure storage options. This reduces the number of tokens on the market and could indicate a long-term accumulation strategy.
With fewer SHIB tokens available for trading, any increase in demand could drive prices even higher, making the current market setup favorable for SHIB’s potential growth.
The combination of strong price action, reduced exchange reserves, and rising demand places SHIB in an interesting position. Investors are watching closely to see if the token can continue its upward trajectory and break through the critical resistance levels. If so, SHIB may be poised for even more significant gains in the near future.
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