Why Shiba Inu Price Might Boom as Exchange Deposits Hit 3-Year Low

Shiba Inu price is trending inside a range after failing to sustain above the range in the recent market-wide rally. Despite the consolidation, the market sentiment around Shiba Inu is bullish as traders anticipate it may surge higher. An analysis of on-chain metrics shows the price of SHIB may be up for a 40% rally soon. In the meantime, the Shiba Inu coin price increased by 3.5% in the last 24 hours, and the price was traded at $0.00001413.

On-Chain Metrics Hint Shiba Inu price Rally Inbound

Several on-chain metrics from Santiment confirm that Shiba Inu price is due for a rally soon. The Shiba Inu Network Value to Transaction (NVT) ratio surged back to monthly highs. Still, investor sentiment is bullish on SHIB, which means they are pricing the meme coin at a premium, possibly due to speculative interest or future growth expectations.

This assessment is evident in the network realized profit/loss metric, which hit a 4-month low during Shiba Inu price consolidation. The drop in realized profit shows fewer investors are selling their assets at a profit, possibly due to a lack of significant price movements as the price has stagnated. 

It further indicates that the market is indecisive as investors might be holding onto their assets, waiting for clearer signals before making any moves.

Consequently, SHIB deposits to exchanges have reduced over the last three days, hitting the lowest in three years, investors are not moving their assets to exchanges to sell since they are possibly anticipating future price increases.  

Futures Traders are Bullish on SHIB Price

According to the Coinglass 30-day Liquidation Map, there are way more longs than shorts. The imbalance shows bullish sentiment is dominating the market because traders anticipate further upside potential for Shiba Inu price.

Additionally, the Coinglass Crypto Derivatives Visual Screener (CDVS), which shows the relationship between the changes in open interest (OI) and price, indicates that traders are opening long positions on SHIB as both the OI and price increased over the last 24 hours. This suggests that new money is entering the market, supporting a potential upward trend from the current consolidation.

The recent price action indicates that SHIB is consolidating within a defined range between defined supply and demand zones, suggesting a lack of strong directional momentum.

SHIB price may find resistance around the supply zone level $0.00001528. This area also aligns closely with the 50-day EMA, providing a dual layer of resistance. Shiba Inu price prediction shows if it breaks above this barrier, the meme coin can surge to $0.00001760, a 27% surge from the current price.

If the price of SHIB breaks and maintains below $0.00001300, it may show market weakness, invalidating the current bullish thesis. SHIB price may find further support lower around $0.00001080. 

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Evans Karanja

Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.