- SHIB holders withdrew more tokens from exchanges than those deposited.
- The meme coin might retest $0.000010 over the coming days.
The price of Shiba Inu [SHIB] might be set for a bounce, according to AMBCrypto’s assessment of the Exchange Netflow Volume.
Using data from Glassnode, we discovered that the Exchange Netflow Volume went from 13.36 billion on the 3rd of February to -31.32 billion at press time.
This metric is calculated as the difference between tokens flowing in and out of exchanges. A positive Netflow suggests that more tokens are being deposited than withdrawn.
Typically, this is a bearish signal that could lead to selling pressure.
But since Shiba Inu’s Netflow was negative, it implies more withdrawal than inflows. As such, the meme coin could be looking for a positive price movement.
Is a pump on the way?
At press time, SHIB’s price was $0.0000089, indicating a 16.56% decrease since the year began. But if the Netflow does not flip back positive, this decrease might halt.
So, SHIB might return to the $0.000010 direction.
From a technical point of view, the 4-hour SHIB/USD chart showed that the token could be set for a breakout.
This was evident from the price movement as SHIB tried to exit the descending channel it had experienced for most of the last few weeks.
Should the price move out of the tight-trading zone, its first target could be between $0.0000093 and $0.0000096.
In a highly bullish scenario, Shiba Inu might retest $0.000010. Another indicator backing this potential was the Chaikin Money Flow (CMF). At press time, the CMF was 0.25.
The CMF uses the volume and price movement to predict trends.
Typically, a negative CMF suggests a downtrend. Therefore, a positive CMF for SHIB indicates that the token has a massive uptrend potential.
But if the bullish potential fizzles out, the price might retrace to $0.0000085.
A look at the Accumulation/Distribution (A/D) line showed that market players have refrained from liquidating their SHIB holdings.
Instead, the A/D showed that most are buying the meme coin, putting it in pole positions for a significant increase.
It’s “look before you leap”
Recently, AMBCrypto reported how many Shiba Inu holders were out of money compared to Dogecoin [DOGE]. But with the on-chain and technical indicators analyzed, that stance could change soon.
Crypto analyst Ali Martinez also shared this view in a post he made on the 30th of January.
According to him, the Tom DeMark (TD) Sequential indicated that SHIB could be gearing up for an upswing. He also mentioned that SHIB might hit $0.010 in the process.
— Ali (@ali_charts) January 30, 2024
The TD Sequential identifies when a trend is exhausted and the price is ready to reverse. If Martinez’s opinion comes to pass, then SHIB would have replicated a form last seen in 2021.
How much are 1,10,100 SHIBs worth today?
Yet, the Weighted Sentiment was -1.017. This reading suggests that market participants were not optimistic about SHIB’s price action.
However, there is a chance that the perception might change soon. For example, if SHIB moves to $0.000090, players can see the light of a potential upswing and change their stance.