Shiba Inu (SHIB) appears to be entering a period of steady accumulation after enduring a prolonged market downturn. The token currently trades within a narrow consolidation range, a pattern often indicating positioning ahead of a significant price movement.
On-chain data from CryptoQuant has confirmed a notable rise in SHIB transactions, increasing from 6,200 to 7,510. With everything happening around the token, its price has been relatively constant, usually a sign that more people are buying it than selling it.
There was a significant net exchange outflow of -111.8 billion Shiba Inu tokens on May 20, indicating that large investors are moving their crypto into personal wallets with confidence in its long-term value rather than preparing to sell.
Another sign of this emotion is the increase in SHIB’s coin burn rate. In the last 24 hours, the burn rate jumped by 5 million tokens from 84.6 percent to 85.81 percent. The increasing rate at which tokens are unlocked favors tightening the token supply and strengthens its overall positive outlook.
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Indicators Signal Waning Bearish Pressure as SHIB Holds Key Levels
Technical indicators are now reflecting signs that bearish momentum may be weakening. The Relative Strength Index (RSI) is currently positioned at 51.51, slightly above the neutral midpoint. This level indicates a balance between buying and selling, with a potential tilt toward bullish momentum if the RSI moves beyond 60.
Meanwhile, the Moving Average Convergence Divergence (MACD) is approaching a crossover above the zero line. Closing MACD lines and a weakening negative bar on the histogram agree that the downward pressure is lessening.
SHIB maintains support at the primary Fibonacci retracement levels on the chart for a single day. The chart provides 0.382 Fib at $0.00001357, 0.5 Fib at $0.00001417, and 0.618 Fib at $0.00001478. These sectors are essential places for buyers to increase their holdings.
If SHIB continues to rise over these points, unique targets appear at 1.618 Fib of $0.00001841 and the more ambitious 4.236 Fib at $0.00002834. Sudden rises like these open up potential regions to watch for bullish actions.
The market trend suggests investors are getting ready for SHIB’s price to increase. Rising activity, clearly visible token burns, and fewer downward signs on the charts keep the token in the spotlight during its current consolidation.
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