Shiba Inu has faced selling pressure over the past month, with major cryptocurrency exchange Binance recording massive outflows of the memecoin totaling over 3 trillion tokens. This has coincided with a 13% drop in the SHIB price over the past week and a 10% fall in the last 30 days. However, some analysts say there is still hope for a recovery in the medium to long term.
Major Outflows Reflect Bearish Sentiment
As noted by on-chain analytics platform Spot On Chain in a recent tweet, Binance saw several large transactions in late December into January amounting to 2.74 trillion SHIB tokens worth $25.2 million exiting the exchange. These outflows typically signal investors looking to hold the asset for the long term or move it into secure storage rather than leave it on an exchange for active trading or liquidation.
“Another fresh whale 0xf63 withdrew 546B $SHIB ($4.93M) from #Binance at $0.05902 just now. In the past 1.5 months, there have been 5 whales (incld. Justin Sun) withdrawing 2.742T $SHIB ($25.2M, price: $0.05921) from #Binance,” the platform tweeted.
This massive volume of SHIB being moved off Binance reflects fading short-term confidence in the token among crypto power players. And that bearish view has been playing out in the market over the past four weeks as well.
Technical Analysis Flags Further Downside
In its latest Shiba Inu price analysis, trading firm AltFins also sees more room for declines ahead, noting:
“Price is in an Uptrend. However, following a bearish breakout from Symmetrical Triangle pattern, price could pull back to $0.000008 support (also 200-day MA). That would be an attractive swing trade entry in Uptrend. (set a price alert).”
AltFins sees the short-term technical picture as bearish, with the trend, momentum, and key support levels all signaling additional downside risk in the near future. The $0.000008 level represents the next major area of expected buyer interest after SHIB crashed through support at $0.000010.
Hope Seen for Medium to Long Term
However, AltFins does see scope for a longer-term recovery, noting: “Trend: Downtrend on Short-Term basis and Uptrend on Medium- and Long-Term basis.” So while more declines may come in the coming days to weeks, the months and years ahead could see buyers regaining control and powering a sustained SHIB uptrend.
The hope is that although technicals also say the trend is down in the short term, the medium and long terms remain an uptrend. So for SHIB investors focused on the bigger picture rather than short-term gains, the fundamental and technical outlook does provide some reasons for optimism further ahead. But traders and speculators may want to wait for a definitive chart signal of the current bearish momentum fading before jumping back in.
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