The price of Shiba Inu Coin recently fell back after testing the weekly resistance level, but the on-chain data revealed positive signals.
Data shows that SHIB's exchange outflows have increased significantly, while some long-dormant wallets have become active, suggesting that the market may be brewing a rebound.
If the price closes this week below $0.000019, the confidence of the bulls might take a hit.
But for now, SHIB is trading at a stable price of around $0.000024 on Thursday, despite a drop of more than 5% last week. It is worth noting that investors do not seem to be concerned about the recent price correction, but are buying on dips, which is also confirmed by some signals on the chain.
Shiba Inu investors buy on dips
After experiencing a surge of more than 50% in early November, the price of Shiba Inu Coin has temporarily entered a period of adjustment. However, on-chain analysis shows that market sentiment remains bullish. According to Santiment data, exchange outflows have risen sharply, with about 1.67 trillion SHIB (worth nearly $41 million) being withdrawn from exchanges.
Historical data shows that whenever there is a similar surge in outflows, the price of Shiba Inu Coin tends to experience a significant rise.
Further supporting the bullish view is Santiment’s Age Consumed Index, which shows that long-term Shiba Inu coins sitting in wallets are beginning to move, often signaling a short-term top or bottom in the market.
For Shiba Inu, historical experience shows that after a sharp rise in price, there is usually a pullback, but there is also a subsequent rebound. The latest rise on November 14 also seems to suggest that SHIB is ready to enter a new upward phase.
Shiba Inu (SHIB) Price Prediction: Recovery Possible
In the second week of November, the Shiba Inu price encountered resistance at $0.000028, after which it fell by more than 5%. The $0.000028 level is not only a weekly resistance level, but also coincides with the 50% retracement level (from the March high of $0.000045 to the August low of $0.000010). Therefore, this price level has become a key resistance area. The current price is around $0.000023, and the correction is still continuing.
If the Shiba Inu can break out and stabilize above $0.000028, it could rally to retest late-March highs at $0.000032.
Looking at the Relative Strength Index (RSI) on the weekly chart, the current value is 59, which is already above the neutral line of 50, which means that bullish momentum is gradually gaining momentum.
However, if the Shiba Inu (SHIB) continues to pullback and breaks below the weekly support at $0.000019, the downtrend is likely to continue and the price could retest the weekly low at $0.000016.
