In recent trading, Shiba Inu (SHIB) remarkably maintained its $0.000030 support level, peaking at $0.0000033 on March 13, 2024. Despite a broader downturn in the memecoin sector, SHIB investors show a steadfast refusal to offload their holdings.
Could Limited Selling Spark a SHIB Rally?
The reluctance to sell might pave the way for SHIB to surge past the $0.00004 mark. In a significant move, investors have transferred 7 trillion SHIB to long-term storage this March, hinting at a potential market shift.
Shiba Inu (SHIB) Exchange Reserves | Source: CryptoQuant
Although the memecoin demand wanes, Shiba Inu’s price averts a significant drop, trading at $0.000034 and outperforming its 8-day Exponential Moving Average (EMA-8) at $0.000032. The decrease in selling pressure, as evident from on-chain data, supports SHIB’s momentum while its counterparts like PEPE and BONK lose ground.
Related article: Deciphering Shiba Inu’s Whale Activity: Insights into Cryptocurrency Dynamics
Exchange Reserves Drop Signals Bullish Sentiment
The CryptoQuant exchange reserves chart reveals a drop from 164 trillion SHIB in wallets at February’s end to 157 trillion by March 14, showing a shift of 7 trillion SHIB away from exchanges. This $230 million move indicates a selling reluctance, potentially leading to a supply squeeze and favorable price action.
With the memecoin sector poised for another demand upswing, the current supply reduction could significantly amplify SHIB’s price increase.
Related article: Unveiling SHIB’s Strengths: Factors Propelling Shiba Inu’s Potential $0.01 Rally
The transfer of 7 trillion SHIB out of the market primes Shiba Inu for a potential rally toward $0.00004. Currently trading above its EMA-8 at $0.000032, SHIB showcases the bullish sentiment amidst a market retraction.
Future Price Movements
If the selling pressure stays low and SHIB breaks past the $0.000035 barrier soon, we might witness a leap above $0.00004. Conversely, a downturn in the broader memecoin market could push SHIB towards $0.000002, though $0.0000030 is likely to emerge as a critical support zone.
Shiba Inu (SHIB) price prediction, March | Source: TradingView
Shiba Inu’s price resilience amid a faltering memecoin market, bolstered by investors’ commitment to long-term holding and a substantial decrease in exchange reserves, sets the stage for a potential upsurge.
The current dynamics suggest a bullish outlook, with a keen eye on surpassing the $0.00004 threshold. However, market volatility necessitates cautious optimism, with various support levels ready to play a pivotal role in SHIB’s price trajectory.
