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Shiba Inu has finally defied a long-standing supply trendline, getting support from renewed buying pressure in the past 24 hours.
Shiba Inu ($SHIB) was stuck within this dynamic neckline resistance for over a month, with several failed attempts to break above. However, a notable recovery did the work yesterday, spurred by what appears to be accumulation pressure from holders.
Key Points
- Shiba Inu has finally defied a long-standing supply trendline, getting support from renewed buying pressure in the past 24 hours.
- This line started forming after an intraday high of $0.00000725 on February 14 and has since suppressed Shiba Inu’s price.
- Yesterday, Shiba In finally closed above this descending trendline on the daily timeframe.
- On-chain data shows an exchange netflow of -133,335,400,000 $SHIB in the past 24 hours, providing bullish momentum.
Shiba Inu Breaks Above Descending Trendline
Notably, this line started forming after an intraday high of $0.00000725 on February 14. The rally halted around this area, forming a lower high. Subsequently, prices dropped considerably to retest key support areas.
As the trendline extended downwards, it kept on suppressing Shiba Inu’s price. It met with $SHIB again on March 16 and 25 at $0.00000644 and $0.00000628, respectively, but a similar rejection happened.
Yesterday, however, Shiba In showed resilience, recovering from earlier bearish momentum that pulled its price down to $0.00000579, closing at $0.00000600. The move ensured it finally closed above this descending trendline on the daily timeframe.
$SHIB has defied a notable supply wall, and sustained momentum could take it much higher. Interestingly, the token also broke above the 50-day moving average at $0.00000591, further adding bullish context. The next target should be the 100-day MA, currently around $0.00000673.
133 Billion Exchange Netflow Provides Bullish Momentum
Meanwhile, on-chain data from CryptoQuant shows an exchange netflow of -133,335,400,000 $SHIB in the past 24 hours, representing an impressive 9.46% increase in the past 24 hours. The metric tracks the difference between inflows and outflows from trading platforms, with the negative value suggesting more withdrawals than deposits.
Typically, this scenario implies that Shiba Inu holders are accumulating rather than distributing, moving their holdings away from exchanges where they can be easily sold to self-custody addresses. This not only reduces selling pressure but also provides bullish momentum.
Trading volume has also increased 41% in the past 24 hours, suggesting that user participation has improved considerably. The spot and futures taker volume both show that the spike was positive, as taker buy volume slightly outpaced taker sell volume.