Shiba Inu (SHIB) climbed above $0.0000042 on Tuesday after breaking through a key descending trendline that had constrained its price since mid-May. This breakout signals a potential continuation of the coin's recovery as market dynamics shift.
Exchange Outflows and Market Sentiment
Data from CryptoQuant revealed five consecutive days of net outflows starting July 17, indicating investors are transferring SHIB tokens from centralized exchanges to private wallets. This behavior typically reflects a reduction in selling pressure, as holders move assets for longer-term retention instead of immediate liquidation.
CoinGlass derivatives data supports this positive outlook. On Tuesday, the long-to-short ratio for SHIB was 1.02, showing a slight majority of traders favoring long positions. also the perpetual futures funding rate has stayed positive since July 17, registering 0.0103% on Tuesday. Positive funding rates mean traders with long positions pay shorts, signaling dominant bullish sentiment.
Technically, the next resistance for SHIB stands near $0.0000045, close to its 50-day Exponential Moving Average. Surpassing this level with strong volume could fuel further upward momentum for the meme coin.
The information provided is for informational purposes and does not constitute financial advice.
