Shiba Inu is showing some bullish signs, as an on-chain metric that is typically bullish for the price is going up again. However, this time may be different, with price action showing a mixed picture.
A crypto analyst known as Ali on X noted that 1.67 trillion SHIB tokens have been withdrawn from exchanges in just the past 24 hours. He noted that the pattern is reminiscent of a previous spike, during which the price of SHIB surged by 60%.
1.67 trillion $SHIB have been withdrawn from exchanges in the past 24 hours. The last time we saw a similar spike, #ShibaInu surged 62% in price. pic.twitter.com/zcgmusDCuP
— Ali (@ali_charts) November 20, 2024The analyst pointed out two key data sets shown on the chart: the exchange outflow, represented by a blue line, and the price of SHIB, indicated by a black line. The exchange outflow measures the amount of SHIB being withdrawn from exchanges, which signals reduced selling pressure or accumulation by holders. The price line tracks the market value of SHIB over the same timeframe.
He observed that spikes in exchange outflows often precede or coincide with notable price movements. He noted a sharp increase in outflows around early November 2024, which correlated with a significant upward price movement for SHIB.
Could This Spike Lead to Another Price Surge for SHIB Token?
The price of SHIB is trading above a strong support level. If this support holds, we could see the price increase from the current levels. This support has been showing strength as it has been able to keep the price above it for one week.
Looking at the chart from a broader perspective, the price has been bouncing off an ascending trendline since August. It bounced off this crucial level in August, October, and early November.
This point has been an important point of liquidity. Should the support break, we expect to see a periodic decline back to the trendline for the price to gain more liquidity.
There are two potential scenarios based on the current market conditions. In a bullish case, if SHIB price manages to stay above the gray zone, it could lead to a resumption of the upward trend, with the potential to test recent highs.
On the other hand, in a bearish case, a break below the gray zone could trigger a downside correction to the trendline for liquidity.
