Shiba Inu (SHIB) token exchanges experiencing record-low deposits, suggesting a possible lack of selling activity among holders.
Shiba Inu (SHIB), the popular meme cryptocurrency, is currently at a turning point, according to recent market analysis. The digital asset is consolidating in a tight symmetrical triangle, with the price circling around $0.0000123.
This consolidation, coupled with a lack of new selling pressure and a sizable influx of new buyers, suggests a period of impending volatility for Shiba Inu. The Relative Strength Index (RSI) for Shiba Inu is almost neutral, allowing for a swing in either direction.
One of the key indicators pointing towards potential volatility is the declining number of depositing addresses for Shiba Inu. Previous peaks for Shiba Inu exchange deposits were over 900, but the most recent data shows a dramatic decline, with only 222 depositing addresses. This decline indicates less fresh selling pressure on the market.
The collapsing depositing transactions for Shiba Inu is another bullish indicator. Traders are keeping their Shiba Inu tokens instead of sending them to exchanges, which could be a sign of potential bullish sentiment.
However, the downside risk for Shiba Inu persists due to the sheer number of tokens already present on exchanges. If sentiment turns negative, the trillions of Shiba Inu on hand could have a significant impact on price action.
The market is left to decide whether the breakout will ultimately favor the bulls or if the breakout will cause a collapse due to its own supply. A clear breakout above resistance at $0.0000130-$0.0000131 could pave the way for a relief rally. On the other hand, a breakdown below $0.0000120 could cause another leg lower, possibly testing $0.0000105.
Investors are advised to keep a close eye on the price as it coils tighter within the symmetrical triangle formation. The outcome of this consolidation period could significantly impact the future price direction of Shiba Inu.
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