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Shiba Inu (SHIB) has defied the recent slump in the memecoin market, holding strong above the $0.000030 support level. This resilience can be attributed to a key development: a significant transfer of SHIB tokens from trading wallets to long-term storage, indicating a shift in holder sentiment.
Widespread Reluctance to Sell Propels Shiba Inu
Despite weakening demand across the memecoin market, SHIB has managed to avoid a major pullback. The token is currently trading at $0.000034, well above its 8-day Exponential Moving Average (EMA-8) of $0.000032. On-chain data reveals a crucial factor behind this stability: curtailed selling pressure among existing SHIB holders.
7 Trillion Shiba Inu Shifted to Long-Term Storage
A comparison of CryptoQuant exchange reserve charts shows a significant decline in SHIB tokens held on crypto exchange wallets. From a total of 164 trillion SHIB at the end of February, the figure has dropped to 157 trillion SHIB at the time of writing (March 14). This translates to roughly 7 trillion SHIB tokens transferred from trading wallets to long-term storage in just the first two weeks of March, signifying a widespread reluctance to sell at current prices.
Reduced Supply Paves the Way for Price Increase
The transfer of 7 trillion SHIB tokens, valued at approximately $230 million, effectively reduces the supply of SHIB available on the spot market. This has a positive impact on price in the near term, as there are fewer tokens readily available for sale. If the memecoin sector experiences another surge in demand, this supply crunch could further amplify a SHIB price upswing.
Shiba Inu Price Prediction: $0.00004 Target in Sight
The movement of a significant amount of SHIB to long-term storage positions the token well for another bullish run towards the $0.00004 mark in the short term. Additionally, trading above the 8-day EMA reinforces the resilience of SHIB bulls during the broader memecoin market pullback.
Bullish Breakout or Short-Term Correction?
If selling pressure remains low and SHIB manages to break above the initial resistance at $0.000035, a decisive breakout exceeding $0.00004 could be imminent. However, if the bearish sentiment surrounding large-cap memecoins intensifies, SHIB might fall towards $0.00002. In such a scenario, the $0.000030 level is likely to act as a significant psychological support floor.
Conclusion
The recent transfer of a substantial amount of SHIB to long-term storage indicates a bullish shift in investor sentiment. Reduced supply due to this movement, coupled with SHIB’s current trading position above its 8-day EMA, suggests that the token is primed for a potential price increase towards $0.00004. However, market conditions and overall memecoin sector trends will also play a role in determining the short-term price trajectory of Shiba Inu.
