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Shiba Inu has taken traders by surprise with a strong upward move, recovering the $0.0000123 level and gaining almost 4% on the day. The abrupt pump coincides with an enormous 300 billion SHIB decline in exchange reserves over the previous 48 hours, according to on-chain data.
SHIB tokens' outflow
Tokens leaving centralized exchanges is frequently interpreted as a bullish sign since it lessens the possibility of selling pressure and suggests that holders may accumulate tokens over time. Strong upward momentum across a variety of assets has historically been associated with steep drops in exchange reserves. Markets become more susceptible to price spikes in the event of an increase in demand, when there are fewer tokens available on trading platforms.
Since there is no immediate selling risk, the quick outflow for SHIB indicates that whales, or large holders, are transferring their tokens into cold storage or DeFi ecosystems. Technically speaking, SHIB’s price chart validates the breakout attempt. Following consolidation in the $0.0000114-$0.0000119 range, SHIB saw a strong rally on Oct. 1, accompanied by rising volume and expanding green candles.
The 20 EMA and other short-term resistance levels were breached by the token, which is currently testing overhead moving averages between $0.0000124 and $0.0000127. This area is important for bulls to protect because it also lines up with the larger descending channel.
Not becoming euphoric
Indicating caution in the near future, the RSI has surged to 66, moving closer to overbought conditions. But the pump's accompanying rising volume suggests that real buying activity, not a spike in low liquidity, is driving the move. The next target, if SHIB can maintain momentum and hold above $0.0000120, is between $0.0000126 and $0.0000130. If not, the price may be pulled back toward support around $0.0000114.
To put it briefly, the unexpected pump can be explained by the 300 billion SHIB reserve drop. Sellers are slowing down as there are fewer tokens available on exchanges, creating space for bullish momentum. It will be determined by SHIB’s capacity to hold above resistance and sustain buying volume in the upcoming sessions whether or not this signals the beginning of a longer-term reversal or merely a temporary rebound.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team