Selling Pressure Disappears...Shiba Inu Ready for Major Surge Due to Supply Shock

▲ Shiba Inu (SHIB)

Shiba Inu (SHIB) is gathering energy for an explosive breakout after going through a price consolidation phase.

According to a report by virtual asset specialized media The Crypto Basic on April 9 (local time), Shiba Inu has broken through its recent downtrend line and is now reducing volatility by forming trading volume within a narrow range. This trend is typically interpreted as a precursor to a large price movement. Market experts analyze that the current Shiba Inu chart structure is completing a bull flag pattern for entering a bull market.

On-chain data analysis shows that market selling pressure has significantly decreased. According to CryptoQuant data, approximately 133.3 billion SHIB of Shiba Inu was withdrawn from exchanges to external wallets in the past 24 hours. A decrease in exchange balances is used as an indicator that investors intend to hold assets long-term. A supply reduction creates an environment where prices can surge even with a small inflow of demand. Token burning activities through Shibburn also continue steadily, contributing to the regulation of circulating supply.

Positive signals are also detected in the derivatives market. Shiba Inu's open interest increased by more than 9% from the previous day, reaching $57.33 million. This suggests that new buying demand is entering the market. Key technical indicators, such as the Relative Strength Index, are also attempting to transition upwards from the neutral zone. Whether it breaks through the 100-day moving average of $0.00000673 is considered a key observation point determining the success or failure of a short-term rally.

The rebound of the overall market, including Bitcoin, also provides a favorable backdrop for Shiba Inu. Although the market is in a wait-and-see mode ahead of the US Consumer Price Index announcement, Shiba Inu is showing differentiated movements based on its unique ecosystem updates and community strength. Experts point to $0.000008 as a strong resistance level, predicting that a clear break above this level could lead to a vertical ascent towards previous highs.

Shiba Inu is currently establishing a solid support line at the $0.000006 level and is testing for an upward breakout. Increased outflows from exchanges and expanded open interest are favorable conditions for a price increase. As technical indicators improve, market participants are focusing on whether the $0.00000673 level will be reclaimed and are adjusting their positions accordingly.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*