Technical Analyst Says Shiba Inu Ready for $0.00002 Recovery as Selling Pressure on Exchanges Reduces

Kyle Doops, a technical analyst on the Crypto Banter show, suggests that a Shiba Inu recovery to the $0.00002 region is imminent amid reduced selling pressure for SHIB.

In a post on X, Doops highlighted that the net flows of Shiba Inu tokens to centralized exchanges have dropped in recent days, citing data from analytics platform CryptoQuant. Accordingly, he stressed that the break in selling pressure implies whale accumulation, making the asset poised for significant recovery soon.

$SHIB's net flow into exchanges has dropped, reducing selling pressure.

Although whales offloaded 392.7 billion tokens, the lower net flow suggests a bullish outlook and possible price rebound.

SHIB's recovery is linked to Bitcoin; as Bitcoin exceeds $60,000, SHIB shows signs… pic.twitter.com/VRy9Sx0FvJ

— Kyledoops (@kyledoops) June 27, 2024

Shiba Inu Reduced Selling Pressure on Exchanges 

According to the latest record, approximately 78.4 billion SHIB tokens had been sent to exchanges today at press time. Meanwhile, the more substantial 121 billion SHIB tokens sent out of exchange today have countered this influx. 

As a result, the net flow to liquid platforms at press time amounts to negative approximately 42.6 billion Shiba Inu.

Notably, a similar trend was observed yesterday when market participants moved to sell around 485 billion Shiba Inu on exchanges. At the same time, others took out 633 billion SHIB from the platforms, neutralizing the selling pressure for the day. 

Furthermore, Shiba Inu last had a positive net flow on exchanges on June 24, when holders dumped over 2.3 trillion SHIB tokens. Outflow on this day was approximately 1.29 trillion. Given that the influx stood over 1.01 trillion tokens less, the price of SHIB slumped to $0.00001642 on Monday.

Now, CryptoQuant data shows that the net flows of Shiba Inu to exchanges have been negative for four consecutive days, wherein outflows supersede inflows. This trend explains the stability of Shiba Inu’s market values over the past few days.

At the time of reporting, Shiba Inu hovers around $0.00001723, reflecting a 2% uptick in the last 24 hours.

SHIB Ready for $0.00002

With the current outflow trend, Doops suggested that whales are taking advantage of Shiba Inu’s low price to accumulate, potentially driving the asset back to the $0.00002 price range in the coming days.

Notably, Shiba Inu gave up the $0.00002 support on June 17. To regain the threshold, SHIB only needs a 16% price rally.

Moreover, the analyst noted that Shiba Inu’s potential reversal is also confirmed by Bitcoin’s rebounding to the $60K region.