Shiba Inu Price Rally Looms as Investors Transfer $50M SHIB into Long-Term Storage 

Insights:

• Shiba Inu (SHIB) price traded at an average of $0.000009 on Wed Jan 10, down 20% in 2024 so far.  
• Shiba Inu holders have transferred 5.27 trillion SHIB (~$50 million) out from trading platforms and exchange-hosted wallets over the last two weeks.  
• Historical trends show that SHIB price has often rallied when supply on exchanges decreases significantly. 

Shiba Inu (SHIB) price is trending at an average of $0.0000097 on Wed Jan 10. Having declined 20% in the first 10 days of 2024, recent on-chain movements reveal the SHIB bulls are making strategic recovery moves. 

Can the rapid decline in SHIB exchange supply validate a bullish SHIB price forecast? 

SHIB Holders Shifted 5.27 Trillion SHIB away from Trading Platforms 

Shiba Inu price closed 2023 with a strong performance that saw SHIB reclaim the elusive $0.000010 territory for the first time in 8 months. Since the turn of the year, SHIB price has struggled to maintain upward momentum. At the time of writing SHIB is trading at $0.00000097, down 20% from the local top recorded Dec 17. 

However, an in-depth analysis of recent Shiba Inu on-chain movements suggest the bulls could be plotting an imminent comeback. Santiment’s Supply on Exchanges metric tracks changes in the number of tokens deposited across exchanges and trading platforms. 

The recent readings show that SHIB Exchange Supply is currently in decline. As depicted by the yellow trendline in the chart below, on Dec 25 a total of 78.17 trillion SHIB tokens were deposited across user wallets hosted on various crypto exchanges. But, at the time of writing on Jan 10, the balances have dropped to 72.9 trillion SHIB. 

This implies that SHIB investors have moved 5.27 trillion SHIB from exchange-wallets into long-term cold storage between Dec 25 and Jan 10. Valued at the current SHIB prices, those tokens withdrawn are worth approximately $50.08 million.

A decline in exchange supply can be described as the crypto-equivalent of bank depositors shifting their funds from checking accounts into long-term savings or fixed investment accounts. 

In effect, the ongoing decline in the supply of SHIB tokens deposited across exchanges can be interpreted as a bullish signal for a number of reasons. Firstly, selling pressure effectively weakens as the number of tokens readily available on trading platforms drops. 

 More importantly, when exchange supply falls during a period of choppy price action as depicted above, it suggests that holders are opting to lock-up their tokens in long-term storage options. 

Notably, the most-recent Shiba Inu price rally which saw it reach an 8-month peak of $0.000011 on Dec 17 was also preceded by a significant drop in exchange supply. 

Drawing inferences from these vital data trends, SHIB price looks in prime position for a major upward movement in the days ahead. 

SHIB Price Forecast: Can it Reach $0.00015

Based on the on-chain data analysis above, Shiba Inu price looks set for bullish price action in the days ahead. And having breached the $0.000011 mark last month, the bulls could set their sights higher during the next rally. 

To validate that optimistic forecast, SHIB price must first surpass the major resistance at $0.000011 as depicted by the current upper Bollinger Band indicator. 

However, a decisive breakout from that zone could open the doors to a possible rally toward $0.000015, as predicted

On the flip side, the bears could negative the optimistic narrative if SHIB price wobbles below $0.000091. But in that scenario, the bulls could regroup at the $0.000091 support zone as depicted by the lower Bollinger band.