Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
For Shiba Inu, the last 24 hours have been chaotic, with over 408 billion SHIB tokens abruptly and unexpectedly draining liquidity from centralized exchanges. Because it happened during a widespread market crash, when the majority of investors were selling rather than withdrawing their holdings, this event is especially noteworthy.
SHIB's protocols wind down
Exchange inflows tend to increase during market-wide sell-offs as traders scramble to get rid of their positions. This time, though, SHIB witnessed the opposite: an atypical spike in withdrawals from significant exchanges. As a result, there may be a shift away from panic selling and toward accumulation, as more holders move their assets to cold storage or DeFi protocols (considering the market conjuncture, the last one is more likely).
Technically speaking, SHIB’s price action presents a conflicting image. The token hit a local low close to $0.0000075 before crashing violently below the $0.0000100 support, and then rising back toward $0.0000109. The volume recovery suggests potential stabilization, but the daily chart clearly breaks out of a descending wedge pattern. The 200-day moving average, which SHIB has used historically as a psychological support zone, is currently being tested for lower bounds.
SHIB's price analysis
The subsequent resistance is located between $0.0000126 and $0.0000134, which is the convergence area of the token’s 50-day and 100-day moving averages, if it is able to maintain above this level and draw consistent buying pressure.
Nonetheless, market sentiment is still brittle, in spite of the partial recovery. The Relative Strength Index (RSI), which is slightly above 41, indicates that bulls have little conviction and little momentum. The spike in exchange outflows may be a sign of confidence, in contrast to the general panic, as whales or long-term holders are using the crash to reposition.
For the time being, however, SHIB’s rally potential is limited unless on-chain activity and liquidity return. The exodus of 408 billion SHIB essentially highlights a paradox: although traders are alarmed by market volatility, the most patient investors might already be getting ready for the next stage of accumulation, discreetly and outside of exchanges.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team