While Bitcoin has been setting new all-time highs, Shiba Inu still appears to be warming up its rally. Over the past 24 hours, the Shiba Inu price has climbed nearly 4%, joining the broader market push. The 7-day gains are even more impressive, at around 15%.
But if you’re looking for deeper upside, it might not be wise to discount SHIB yet — the token has just broken out of a bullish symmetrical triangle. Still, two on-chain metrics are sending conflicting signals, suggesting that prices could swing either way depending on which side gains the upper hand.
Exchange Supply Shrinks, Giving Bulls More Room
Whenever an asset breaks out of a bullish pattern, one of the first metrics to watch is exchange reserves — because they show how much supply could be sold instantly.
In SHIB’s case, July 31 balances were 122.54 trillion tokens, dropping to 121.31 trillion by August 11 — a nearly 1% decline. This signals reduced sell pressure, creating favorable conditions for bulls to extend the Shiba Inu price rally.
What’s worth mentioning is that post the August 11 exchange supply dip to the monthly lows, the Shiba Inu (SHIB) price started surging. Similar supply-led price moves were seen earlier this month: July 24 and August 6.
However, as the price rose, the exchange supply increased slightly from the August lows. Hence, traders should closely monitor SHIB’s balance on exchanges.
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Spent Coin Age Bands Flash Warning: The One Risk To Rally?
While shrinking exchange reserves are bullish, the rise in Spent Coin Age Bands could counter that momentum. This metric shows when older, previously dormant coins are being moved — often a sign of long-term holders taking profits.
In early August, it hit multi-week lows, but has now climbed to levels last seen on July 24, right before a correction. This uptick could reintroduce supply into the market, offsetting the benefits of low exchange balances.
The chart shows that whenever the Spent Coins Age Band metrics made a local high, a SHIB price correction followed. That’s the current risk to the rally that traders should be mindful of.
Shiba Inu Price Action Balances Bullish Setup and Risk
Price levels now become the battleground where these opposing forces meet. With SHIB trading above $0.00001368, the breakout is intact. The most heartening thing about the SHIB price action is that it is breaking out of the symmetrical triangle. A push past $0.00001438 would lend more strength to the breakout.
Next resistance levels lie at $0.00001469 and $0.00001518, with a potential run to $0.00001599 if momentum holds. And even though the Spent Coins and Exchange Supply metrics are at loggerheads, the increase in the bullish power, courtesy of the Bull-Bear Indicator, might validate the possibility of an upmove.
The invalidation zone is between $0.00001318 and $0.00001224. A drop below this level could allow bears to regain control.
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Source: https://beincrypto.com/shiba-inu-price-breakout-exchange-supply-drop/