Key Notes
- SHIB price broke out of a symmetrical triangle after a 10% weekly gain, signaling potential bullish momentum.
- Exchange balances dropped nearly 1% in two weeks, reducing selling pressure.
- Rising Spent Coins Age Bands suggest possible profit-taking and risk of a price correction.
After a 10% weekly upside, the Shiba Inu SHIB $0.000013 24h volatility: 5.0% Market cap: $7.67 B Vol. 24h: $423.78 M price rally has stalled. However, the falling SHIB exchange supply could serve as a catalyst moving forward.
SHIB has been an underperformer in the recent altcoin market, but technical chart patterns suggest that this is about to change. Investors are on edge as the bulls and bears face off at a crucial point.
At the time of writing, the Shiba Inu price is trading at $0.00001359, holding just above the $8 billion market cap. The good thing about SHIB’s price action is that it has broken out of the symmetrical triangle pattern. If SHIB crosses $0.00001438, it could trigger a stronger breakout.
Shiba Inu’s price action. | Source: TradingView
If the bullish momentum for SHIB persists, the next resistance levels are positioned at $0.00001469 and $0.00001518, with a potential upside target of $0.00001599.
Shiba Inu Exchange Supply Dropping
Amid the ongoing price action, the Shiba Inu exchange supply has been declining fast. As of July 31, SHIB exchange balances stood at 122.54 trillion tokens, falling to 121.31 trillion by August 11, a drop of nearly 1%.
This reduction indicates lower selling pressure, creating favorable conditions for bulls to sustain the price rally.
SHIB’s exchange supply. | Source: Glassnode
After the August 11 dip to monthly lows, SHIB’s price began climbing, mirroring similar supply-driven moves on July 24 and August 6.
However, as the price increased, exchange supply saw a slight uptick from the August lows, suggesting traders should monitor SHIB’s exchange balances closely.
This On-Chain Indicator Flashes a Warning
Although shrinking exchange reserves generally signal bullish momentum, the recent rise in Spent Coins Age Bands could counteract this trend.
This metric tracks when older, dormant coins move, often indicating long-term holders are taking profits.
After hitting multi-week lows in early August, the metric has now climbed to levels last seen on July 24, just before a price correction.
This increase could inject additional supply into the market, reducing the bullish impact of low exchange balances.
Chart showing Shiba Inu’s Spent Coins Age Band levels. | Source: Santiment
Historically, local highs in Spent Coin Age Bands have preceded SHIB price corrections. Traders should remain cautious, as this pattern poses a potential risk to the ongoing rally.
