The meme cryptocurrency Shiba Inu (SHIB) has experienced a notable decrease in token supply on exchanges, reaching a six-month low, which represents 7.38% of the total SHIB supply. This reduction in exchange reserves is often seen as a bullish signal for price recovery. Data from Santiment shows that SHIB’s exchange supply dropped to 7.38% as of January 9, down from 8.60% six months prior, indicating a significant decline.
The decrease in SHIB tokens on exchanges suggests less selling pressure, which could play a crucial role in the potential price recovery of Shiba Inu. A reduced number of SHIB tokens available on exchanges, coupled with increasing demand, could lead to a more pronounced price recovery for the meme coin.
Another encouraging on-chain metric for SHIB is the increase in trading volume. On Monday, SHIB’s trading volume reached the highest level in three weeks, totaling 12.1 trillion tokens. Rising trading volume is typically associated with increased activity among market participants and growing demand for the cryptocurrency.
Currently, Shiba Inu’s price is positioned above the 200-day Exponential Moving Average (EMA) at $0.00000890. Resistance levels for SHIB’s price trajectory include the 10-day EMA at $0.00000975 and the 50-day EMA at $0.00000967. The first significant target for SHIB is a potential 12.8% increase from the current price to $0.00001048.
The combination of decreased supply on exchanges and increased trading volume paints an optimistic picture for the potential recovery of Shiba Inu. With reduced selling pressure and key price levels to watch, the conditions are favorable for SHIB enthusiasts. Monitoring these trends is crucial for making informed decisions in the ever-evolving crypto environment.