Key Insights
- Shiba Inu price could surge as trillions of tokens exit exchanges.
- Derivatives data show that open interest and funding rate are rising.
- Technicals point to an eventual comeback in the coming weeks.
Shiba Inu price continued its recent uptrend this week. The token has reached its highest level since August 25. This happened as investors bought the dip amid hopes of Federal Reserve interest rate cuts in the coming meeting.
This Shiba Inu coin rally could continue as investors move their coins away from exchanges to their self-custody wallets.
Shiba Inu Price to Benefit Amid Increased Exchange Outflows
Investors have continued to pull coins from exchanges into self-custody wallets. It is one of the top catalysts that may propel the Shiba Inu price in the coming weeks.
Nansen data shows that the supply of SHIB coins in exchanges has decreased in the past 30 days. There are now 283.47 trillion tokens, down from last month’s highmonth’s.5 trillion. This means over 8 trillion tokens worth over $145 Million have left exchanges.
Exchange outflows are one of the most bullish catalysts for a cryptocurrency because they show the actions of investors. In most cases, investors dump their coins in exchanges when selling them and vice versa.
Derivatives Data Show Some Improvements
Shiba Inu crypto could see upward momentum in the coming weeks as derivatives data signals a rebound in demand. This renewed interest may attract more traders and support a price recovery.
Shiba Inu’s futures interest has continued to rise this month. It had $212 Million in open interest in the last 24 hours, slightly higher than the $209 it had a day earlier.
The open interest has been rising since September 6. It’s a trendIt’st may continue as sentiment in the crypto industry improves. Open Interest (OI) tracks the number of active, unsettled contracts in the futures market. A higher OI indicates strong demand or liquidity for the asset.
Meanwhile, the weighted funding rate has remained green since September 3. This is another critical data in the perpetual futures market. This is because it shows how bulls and bears pay each other to keep their positions open.
A positive funding rate shows traders are eager to hold long positions, anticipating price increases. It typically occurs when the futures price trades above the spot price. This signals the bullish sentiment for the Shiba Inu price.
Bulls Need to Overcome Major Headwinds
Shiba Inu crypto forecast is positive. However, bulls have a lot of work to push it higher as it faces substantial headwinds. The first significant headwind is that whale investors have sold their coins in the past few months.
Nansen data shows that these investors now hold 96.1 billion tokens. It is down from over 137 billion coins at the peak in August. The other risk is that Shibarium’s Shibarium’swork has essentially imploded, with no development and demand activity.
It has a total value locked (TVL) of less than $1.5 Million. It’s a tiny company in an industry with over $300 billion in assets. Further, the trajectory of the SHIB burn rate has not been all that encouraging.
For example, just 69,770 coins were burned on Thursday. This is a small amount for a cryptocurrency with over 584 trillion circulating supply.
Shiba Inu Price Technical Analysis
The daily timeframe chart shows that the Shiba Inu price has rebounded in the past few days. It has risen above the 50-day Exponential Moving Average (EMA), a sign that bulls are gaining control.
The coin also formed an inverse head-and-shoulder pattern, a typical bullish reversal pattern. Also, the Relative Strength (RSI) and the MACD indicators have continued to point upwards.
Shiba Inu crypto is showing signs of a strong bullish breakout. Analysts expect it could reach the key resistance level of $0.000016, last seen in July. Moving above that level will point to more gains, potentially to the psychological level of $0.000020.
On the other hand, a drop below the critical support level at $0.000012 will invalidate the bullish SHIB forecast.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
