The Shiba Inu (SHIB) ecosystem is showing strong signs of a market turnaround as token holders pull significant holdings off exchanges following a 30% price increase over the past month. With over 16 trillion SHIB tokens withdrawn from centralized platforms in just seven days—equivalent to $288 million at current valuations—investor behavior suggests growing confidence and a potential shift toward long-term holding.
This movement reflects more than just price momentum; it signals a structural change in supply distribution that could fuel further gains if sustained.
Massive Token Withdrawals Signal Growing Confidence
According to on-chain analytics from Glassnode, the recent wave of withdrawals has significantly reduced SHIB’s circulating supply on exchanges. When large volumes of a cryptocurrency are moved out of trading platforms, they typically enter cold storage or private wallets, effectively removing them from immediate sell pressure.
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This reduction in available supply can create upward pricing pressure, especially when demand remains steady or increases. In SHIB’s case, the $288 million exodus aligns with a broader trend of accumulating behavior among holders—a bullish development for future price action.
Historically, exchange outflows have preceded major rallies across various cryptocurrencies, including Bitcoin and Ethereum. For meme coins like SHIB, which often experience high volatility and speculative trading, such sustained withdrawal patterns are particularly meaningful.
Why Exchange Supply Matters
Exchange balances act as a proxy for investor sentiment:
- High exchange balances = More tokens ready to be sold, often indicating short-term speculation or profit-taking.
- Low exchange balances = Tokens are being held, suggesting confidence in future appreciation.
With SHIB’s exchange reserves dropping sharply, the market may be transitioning from a phase of uncertainty to one of consolidation and accumulation.
MVRV Long/Short Difference Hints at Market Recovery
Another key indicator pointing to a potential recovery is the Market Value to Realized Value (MVRV) Long/Short Difference, tracked by analytics firm Santiment. This metric compares unrealized profits between long-term and short-term holders.
At its lowest point on September 26, the MVRV Long/Short Difference stood at 33.44%, coinciding with SHIB’s price near $0.000014—a clear sign of bearish dominance. However, recent data shows the metric has improved to -21.49%, indicating that long-term holders are now sitting on more gains relative to short-term traders.
While still negative, this upward trajectory suggests the market is gradually exiting a prolonged bear phase. A rising MVRV Long/Short Difference typically precedes bullish momentum, as it reflects increasing confidence among those who have held through downturns.
When long-term holders begin to realize profits—not panic sell—it often marks the beginning of a healthier, more sustainable uptrend.
Technical Indicators Point to Further Upside
From a technical analysis perspective, SHIB is showing multiple signs of strength. The token is currently trading at $0.000019, just below a key psychological resistance level. But momentum indicators suggest a breakout may be imminent.
Bull Bear Power Confirms Buyer Dominance
The Bull Bear Power (BBP) indicator measures the strength of buyers versus sellers by comparing price action to moving averages. A positive reading indicates bulls are in control.
On the daily chart, BBP has turned decisively positive, signaling that accumulation is outpacing distribution. This shift supports the idea that institutional and retail investors alike are stepping in to buy the dip.
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Moving Averages Confirm Bullish Trend
Further reinforcing this outlook is the relationship between two critical moving averages:
- The 20-day Exponential Moving Average (EMA) is now above the 50-day EMA, forming what’s known as a “golden cross” pattern.
- This configuration is widely regarded as a strong bullish signal, especially when confirmed by volume and on-chain data.
If this trend holds, analysts project SHIB could target $0.000024, representing an additional 25% rally from current levels.
Support and Resistance Levels to Watch
While the path ahead looks promising, key technical levels will determine whether the rally continues or stalls.
- Immediate resistance: $0.000020
A daily close above this level would confirm bullish momentum and likely trigger further buying. - Upside target: $0.000024
This level represents a confluence of Fibonacci extension and historical selling pressure. - Downside risk: $0.000017
If bears regain control and push prices below $0.000020, a retest of support near $0.000017 becomes possible.
Traders should monitor these zones closely, especially in conjunction with on-chain flow data and broader market sentiment.
What This Means for SHIB Investors
The combination of exchange outflows, improving MVRV metrics, and bullish technical patterns paints an optimistic picture for Shiba Inu’s near-term trajectory. While meme coins remain inherently volatile, the current data suggests that SHIB may be undergoing a maturation process—shifting from pure speculation toward more strategic holding behavior.
Long-term investors should view these developments as potential validation of growing network confidence. Meanwhile, short-term traders can leverage technical signals to position for possible upside while managing downside risks.
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Frequently Asked Questions (FAQ)
Q: What does it mean when SHIB is withdrawn from exchanges?
A: When large amounts of SHIB are moved off exchanges, it reduces the available supply for immediate sale. This often signals that holders are confident in future price growth and are choosing to hold rather than trade.
Q: How can exchange outflows affect SHIB’s price?
A: Reduced supply on exchanges increases scarcity. If demand stays constant or rises, this imbalance can drive prices higher due to basic supply and demand dynamics.
Q: Is SHIB currently in a bull or bear market?
A: While not fully in bull territory, SHIB is showing strong signs of recovery. With improving MVRV readings and bullish moving average crossovers, the market is transitioning from bearish to potentially bullish.
Q: What is the significance of the MVRV Long/Short Difference?
A: It shows whether long-term or short-term holders are more profitable. An increasing value favors long-term holders and often precedes sustained price increases.
Q: What price targets are analysts predicting for SHIB?
A: Based on current momentum and technical indicators, some projections suggest SHIB could reach $0.000024—a roughly 25% increase—if bullish trends continue.
Q: Should I buy SHIB now?
A: This article does not provide financial advice. Always conduct independent research and consult with a qualified financial advisor before making investment decisions.
Core Keywords: Shiba Inu, SHIB price, exchange withdrawals, MVRV Long/Short Difference, Bull Bear Power, EMA crossover, crypto market trends, on-chain analysis