Key Moments
- Shiba Inu (SHIB) trades above $0.0000042 on Tuesday after breaking a descending trendline drawn from mid-May highs.
- CryptoQuant data shows five straight days of SHIB net outflows from exchanges since July 17, pointing to easing selling pressure.
- Funding rates turn and stay positive from July 17, with a 0.0103% reading on Tuesday, reinforcing a bullish derivatives backdrop.
On-chain Activity Points to Reduced Selling Pressure
Shiba Inu (SHIB) is building on recent gains, changing hands above $0.0000042 on Tuesday after breaking above a descending trendline the previous day. The move is being supported by strengthening on-chain signals that indicate a potential shift in market positioning.
According to CryptoQuant’s exchange netflow chart, SHIB has registered five consecutive sessions of net outflows (red bars) from exchanges since July 17. This pattern suggests that traders have been moving tokens from trading platforms into private wallets, typically interpreted as a sign of declining near-term selling pressure and a constructive backdrop for price.
Derivatives Indicators Reinforce Bullish Bias
Data from the derivatives market is aligned with the improving spot picture. CoinGlass’ long-to-short ratio stands at 1.02 on Tuesday. A ratio below 1 is described in the article as indicative of bullish sentiment, suggesting that positioning reflects expectations for higher prices.
Funding dynamics also underscore a shift in sentiment. SHIB’s funding rates turned positive on July 17 and have stayed in bullish territory since then, with a reading of 0.0103% on Tuesday. Positive funding means long positions are paying shorts, a structure typically associated with a market leaning toward the upside.
| Metric | Recent Reading / Condition | Implication |
|---|---|---|
| Spot price | Above $0.0000042 on Tuesday | Extends gains after trendline breakout |
| Exchange netflows (since July 17) | Five consecutive days of net outflows | Lower selling pressure as SHIB leaves exchanges |
| Long-to-short ratio (CoinGlass) | 1.02 on Tuesday | Supports a bullish outlook based on positioning |
| Funding rate | 0.0103% on Tuesday, positive since July 17 | Longs paying shorts, signaling bullish sentiment |
| RSI (daily) | 45 | Bearish momentum easing toward neutral |
| MACD (daily) | Bullish crossover, rising green histogram | Supports the constructive technical setup |
Technical Setup: Trendline Break and Key Levels
From a chart perspective, SHIB has broken out above a descending trendline drawn by connecting multiple highs since mid-May. This breakout, accompanied by price trading above $0.0000042 on Tuesday, highlights an ongoing recovery phase.
If the current rebound continues, price action could advance toward the next daily resistance at $0.0000045. A daily close above this barrier is described as potentially opening the way for further upside toward the 50-day Exponential Moving Average (EMA) at $0.0000045.
Momentum indicators are consistent with fading downside pressure. On the daily chart, the Relative Strength Index (RSI) prints 45 and is moving toward the neutral 50 mark, indicating weakening bearish momentum. The Moving Average Convergence Divergence (MACD) has produced a bullish crossover, with green histogram bars increasing, which lends additional support to the constructive outlook.
On the downside, if the price resumes its correction instead of extending the recovery, SHIB could revisit the yearly low at $0.0000040.
Related Market Context
The article also references broader market commentary around related assets and themes:
- Meme Coins Overview: Dogecoin slips as Shiba Inu consolidates despite improving market sentiment
- Ripple and Stellar outlook: Mixed signals keep traders at a crossroads
- Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC eyes breakout, ETH defends key support, XRP recovery stays on track
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