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Although the price of Shiba Inu (SHIB) may be declining, a key positive signal is emerging for the medium- to long-term performance of the dog-themed crypto asset.
Ali, a crypto analyst, reports that a staggering two trillion SHIB tokens were pulled from known crypto exchange wallets just this past week.
#ShibaInu | A staggering 2 trillion $SHIB tokens have been pulled from known #crypto exchange wallets just this past week. pic.twitter.com/MiWMNUp7jY
— Ali (@ali_charts) August 27, 2023
Oftentimes, outflows, which occur when cryptocurrencies are removed from exchanges, signify that investors are transferring their crypto assets to storage, which can be a bullish signal. This can be because investors now want to store their assets safely rather than immediately sell them. This suggests that investors might believe that prices are about to rise.
Exchange inflows and outflows often depict the moves of whales or large holders, which may be important because whales are more likely to buy when markets bottom and sell when markets rise, setting the trend for ordinary investors.
Shiba Inu price action
Shiba Inu has been steadily declining since reaching a high of $0.00000854 on Aug. 23. Shiba Inu could be on track for its fifth consecutive day of losses if it closes in the red today.
A bearish "death cross" formation on the Shiba Inu four-hour chart, as previously reported, may have reinforced the bears. The good news is that a reversal appears to be on the way as SHIB approaches oversold levels.
The SHIB daily RSI is currently at 40, suggesting that the bears have a tiny advantage for the time being. The fact that the RSI has flattened at this level means that there is a greater chance of consolidation or range trading before the next significant move.
Perhaps the relaunch of Shibarium and the bullish move from exchanges could act as a positive trigger for SHIB's price. The overall market trend may also play a factor in determining the next directional price move for SHIB.
Tomiwabold OlajideSHIB was down 2.10% in the last 24 hours to $0.00000794 at the time of writing, following the drop in the crypto market at the start of the week.
Arman Shirinyan
Alex Dovbnya
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Dan Burgin