Shiba Inu Exchange Reserves Dive as Falling Wedge Pattern Signals Potential Upsurge

Shiba Inu exchange reserves hit lows reminiscent of early 2022 as demand surges. A falling wedge pattern on SHIB charts hints at bullish momentum, despite fluctuations.

Shiba Inu (SHIB) witnesses a substantial decline in exchange reserves, reminiscent of levels seen in early 2022, signaling heightened scarcity amidst soaring demand. Since June 26, 2021, SHIB reserves plummeted by a staggering 95 trillion, contrasting sharply with its previous all-time peak of 246 trillion tokens.

The dwindling reserves mirror a broader trend observed since late February 2024, attributed to escalating demand for meme coins. Notably, March 2024 emerged as a pivotal month for meme coins, with the market cap soaring to over $56 billion at its zenith.

Illustrated in blue, the reduced exchange reserves now hover around 151 trillion tokens, accentuating the sentiment among large holders who transferred an additional 5 trillion SHIB off exchanges by March 31. Such movements towards self-custodial wallets underscore SHIB perceived value as a long-term investment vehicle.

Simultaneously, SHIB price action forms a falling wedge pattern on its daily technical charts, as identified by Dami Defi on X, suggesting a potential 50% uptick upon breakout. This pattern typically precedes a bullish surge when breached convincingly, supported by increased trading volume. SHIB current price stands at $0.00002398, reflecting a modest 1.5% uptick.

Zooming out, SHIB has recorded a 14.7% rally over the past fortnight, yielding a remarkable 169% annual return. To validate the falling wedge pattern and catalyze further growth, SHIB must close above $0.000024, aligning with a narrow resistance line held by 10.15 trillion SHIB across 27.5 thousand addresses.

On the Flipside:
While withdrawals from exchanges persist, notable entities like cryptocurrency brokerage firm Cumberland have deposited substantial SHIB amounts, indicating varied market sentiments. For instance, Cumberland injected 144 billion SHIB tokens worth $3.3 million into the market on May 15, 2024, further bolstering trading dynamics.

Why This Matters:
Exchange reserves serve as vital indicators of a cryptocurrency supply-demand dynamics and holders’ trading behavior, influencing market sentiment and investment decisions.

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