Shiba Inu Price Forecast: Why Traders Transferred 1.25 Trillion SHIB amid $120B Crypto Market Dip

Shiba Inu Price Analysis

Shiba Inu price fell below $0.000018 on Oct 23, 2024, down 10.38% and on course to close a 3rd consecutive day in decline. Despite the bearish market sentiment, technical indicators, and fundamental on-chain data trends continue to flash positive signals.

Will SHIB bull traders hold out for an early rebound or succumb to more downsizing?

SHIB Bulls Take 10% Haircut as Crypto ‘Uptober’ Rally Hits $90B Snag

Shiba Inu price experienced a steep 3-day downtrend since rejecting at the $0.000020 support level on Sunday, October 19. Prior to that, SHIB price had been on an uptrend since Oct 10, driven by the 2024 ‘Uptober’ rally.

During that eventful 9-day, between Oct 10 and Oct 19, Shiba Inu had mirrored the broader market performance, climbing to new multi-month peak along with top-ranked cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE).

However, since Shiba Inu bulls failed an attempt to breach the $0.000020 support level on Oct 19, the bullish momentum has weakened considerably. This set the stage for a sharp double-digit SHIB price correction when the crypto markets overheated on Tuesday.

After pulling 21.8% gains between Oct 10 and Oct 19, Shiba Inu price has now closed lower than its opening price in each of the last 3 trading days, according to the data depicted on the TradingView chart above.

At the time of writing on Oct 23, SHIB is hovering around the $0.0000177 area, reflecting 10.38% correction from the monthly timeframe peak of $0.000020 recorded on Sunday.

The global crypto market cap (TOTAL Crypto Cap) highlighted in blue also shows a similar 5.5% downtrend, with over $120 billion wiped out from the sector valuation in the last 3-days. This affirms that Shiba Inu’s downtrend in the last 72-hours is in keeping the broader market trends.

Traders Spotted Shifting 1.25 trillion SHIB into Long-Term Savings

Despite the overwhelmingly bearish headwinds blowing across the crypto markets, Shiba Inu traders have not thrown in the towel. On-chain data trends shows that majority of current SHIB holders are looking to take on sit-and-watch stance rather than enter a panic sell-off amid the ongoing market dip.

CryptoQuant’s Exchange Reserves chart tracks the flow of SHIB tokens deposited across recognized Crypto trading platforms, providing real-times insights into investors dominant sentiment around key market events.

As the Uptober rally peaked, Shiba Inu exchange reserves stood at 139.09 trillion SHIB as of Oct 20. But since then that figure has persistently declined, falling towards 138.63 trillion at the time of writing on October 23.

Essentially, this implies that traders have transferred over 1.25 trillion worth approximately $22 million out from exchanges into long-term storage and cold wallets within the last 3 days.

A decline in exchange reserves during a market dip is often interpreted as a bullish signal for two key reasons.

First it’s signals that majority of current SHIB holders and recent buyers are opting to hold their tokens longer, exuding confidence among key stakeholders.

More so, the $22 million outflows in the last 3-days signals a major decline in short-term SHIB token supply available to be traded on exchange, which considerably weakens the sell-side pressure,

If this trend persists, its could set the stage for a rapid SHIB price breakout, once buying momentum returns to the crypto markets.

Shiba Inu Price Forecast: $0.000017 Buy-Wall Could Trigger Early Rebound

Shiba Inu price has tumbled 10.38%, on course to close 3 consecutive days with a losing performance. However, a $22 million decline in market supply sets the stage for a potential price rebound if bullish momentum returns.

Technical analysis indicators on the SHIBUSD daily chart also emphasizes this optimistic forecast.  Currently, SHIB price is hovering around the $0.000017 level, aligning with a crucial support zone.

As depicted above, The Parabolic SAR dots have moved towards $0.0000166,  beneath the current price which typically suggests strong support building up. This level also coincides with the lower Bollinger Band, underscoring its strength as a critical support line.

More so, Bollinger Bands show narrowing, indicating reduced volatility. Should buying pressure reemerge, the SHIB price could swiftly climb toward the upper band near $0.000019.  SHIB must break past that to key resistance level to extend its bullish trajectory.

In summary, the recent decline in exchange reserves implies holders are opting for long-term positions, reducing sell-side pressure. With $0.0000166 support intact, SHIB appears unlikely to dip further, barring another distinct bearish catalyst.