1.67 trillion Shiba Inu (SHIB) tokens were withdrawn from exchanges in the past day, the largest withdrawal since last year. Such withdrawals usually foreshadow price volatility, and historical data shows that SHIB prices tend to surge 62% afterward. Investors tend to hold the tokens, reducing selling pressure, and the token's "cup with handle" pattern suggests a possible breakout. As the market tightens supply, the price approaches the key resistance level of $0.000025 and may become the next driving force for the rise. Overall, the current trend shows an increase in investor confidence.
Traders continue to be active as 1.67 trillion Shiba Inu (SHIB) tokens were withdrawn from exchanges in the past day.
This is the largest withdrawal since last year, when the Shiba Inu price surged 62% soon after a similar event.
Analysis of the forex outflow chart shows that such withdrawal surges often precede significant price movements, indicating that investors prefer to hold rather than sell. Subsequently, selling pressure may fall.
The sharp increase in token withdrawals coincides with a brief but dramatic spike, mirroring previous patterns Ali noted led to sharp increases in SHIB’s price.
Source: X
If historical patterns hold, the massive flow of tokens leaving exchanges could indicate confidence among Shiba Inu holders, potentially sparking another rally.
The chart further shows that immediately after the spike, foreign exchange outflows fell. This suggests that the initial rush of withdrawals has stabilized.
Such divestment activity often indicates anticipatory behavior by investors ahead of an expected positive development or to avoid potential price declines.
These tokens are finding their way into personal wallets. Therefore, if buying pressure persists, the reduction in circulating supply on exchanges could pave the way for price appreciation.
Shiba Inu mug and handle pattern
The price action chart for SHIB/USD on the 4-hour timeframe is showing a classic cup-and-handle pattern, suggesting a potential breakout.
With SHIB’s massive withdrawals from exchanges, it’s revealed that holders are moving their tokens into cold storage, a sign of growing investor confidence.
Such shifts are often a precursor to higher prices as market supply tightens.
This particular pattern began to form in early October, with the “cup” portion forming until the end of November.
SHIB/USD 4-hour chart | Source: Trading Views
The “handle” portion is characterized by a slight downward price trend but still within the expected range, indicating consolidation rather than a reversal.
Technical indicators show increasing trading volumes as prices rise from the handle, highlighting the bullish sentiment.
Moreover, the relative strength index (RSI) remains neutral despite the rising price, avoiding overbought conditions, which supports the continuation of the healthy uptrend.
If the Shiba Inu maintains its trajectory above the handle resistance line, the price could surge higher. This would replicate previous rallies sparked by similar trading patterns and investor behavior.
SHIB MVRV Z-score
Shiba Inu's MVRV Z-Score moved above the neutral line, which suggests potential for an upward move in price valuation.
This upward trajectory follows a massive 940% spike in the burn rate, highlighting a reduction in supply, which typically fuels price increases.
The price of SHIB approached the critical resistance level of $0.000025 after about 40,000 addresses purchased a total of 54.6 trillion SHIB.
The sustained movement of SHIB price above this level indicates strong buying sentiment in the market and could set the stage for a push towards the next important resistance at $0.000039.
This bullish outlook is supported by a well-formed cup-with-handle pattern, a traditional sign of bullish continuation.
If the Shiba Inu breaks above the current resistance level, a significant upside move could be in the future, which would reaffirm the optimism among investors and traders
