Shiba Inu Silent Accumulation: A Potential Rally on the Horizon?

Shiba Inu (SHIB) is quietly accumulating strength, with on-chain metrics pointing to a potential bullish reversal.

While the meme coin has recently experienced a slight pullback after testing its weekly resistance, underlying trends suggest a promising future.

A Closer Look at Precise On-Chain Data

Massive Exchange Outflow: A significant amount of SHIB tokens, valued at nearly $41 million, has been withdrawn from exchanges. Historically, such outflows have preceded significant price rallies.
Dormant Wallets Awakening: The Age Consumed metric, which tracks the movement of long-held tokens, has spiked recently. This indicates that dormant SHIB holders are becoming active, potentially signaling a bullish sentiment.

Technical Analysis: A Bullish Outlook?

Weekly Resistance: Shiba Inu (SHIB) faced resistance at the $0.000028 level, which coincides with the 50% Fibonacci retracement level. A break above this level could trigger a rally towards the $0.000032 level.
RSI Indicator: The Relative Strength Index (RSI) on the weekly chart is above 50, indicating bullish momentum.

Potential Risks on the accumulation

A weekly close below $0.000019 could invalidate the bullish thesis and hence trigger a further decline.
Market Sentiment: The broader cryptocurrency market sentiment could also impact the SHIB’s price.

Conclusion

While the recent pullback may have dampened short-term enthusiasm, the underlying on-chain metrics and technical analysis suggest that SHIB could be poised for a quick recovery. However, it’s essential to approach any investment with caution and conduct thorough research before making any decisions.

The cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Investors should monitor market trends and be prepared for potential price swings.They should also conduct thorough market research before making any investment decisions.