- Shiba Inu price retraces after testing its weekly resistance level.
- On-chain data paints an optimistic picture as SHIB exchange outflows show a spike and dormant wallets are on the move.
- A weekly candlestick closing below $0.000019 would invalidate the bullish thesis.
Shiba Inu (SHIB) is trading slightly higher, around $0.000024, on Thursday after falling more than 5% the previous week. SHIB On-Chain Metrics Project Uptrend outlook As holders accumulate recent declines and dormant wallets are on the move, all of this points to a card recovery.
Shiba Inu Investors Piling Into Dips
Shiba Inu price is facing a corrective pullback after surging more than 50% in early November. However, its on-chain metrics suggest a bullish outlook. Santiment exchange exit data shows a massive spike, indicating that 1.67 trillion SHIB worth nearly $41 million was removed from exchanges. Historically, when SHIB saw a similar surge in exchange outflows, the meme coin rallied massively.
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Shiba Inu Exchange release chart. Source: Santiment
Santiment’s Age Consumed Index also aligns with the bullish outlook. Spikes in this index suggest that dormant tokens (tokens stored in wallets for a long period of time) are on the move and can be used to spot short-term local highs or lows.
For Shiba Inu, history shows that spikes were followed by a rise in meme coin prices. The most recent rise on November 14 also predicted that SHIB was ready for an uptrend.
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SHIB age consumption table. Source: Santiment
Shiba Inu price forecast: recovery in sight
Shiba Inu price declined by over 5% after facing resistance around its weekly level of $0.000028 during the second week of November. Weekly resistance at $0.000028 coincides with the 50% price retracement level (taken from a March high of $0.000045 to an August low of $0.000010) at 0.000028 $, making it a key resistance zone. Of the this weekthe decline continues, trading at around $0.000023.
If Shiba Inu breaks and closes above $0.000028, it will rally to retest its late March weekly high of $0.000032.
The Relative Strength Index (RSI) on the weekly chart reads 59, above its neutral level of 50, indicating that bullish momentum is gaining momentum.
SHIB/USDT Weekly Chart
However, if SHIB continues its pullback and closes below the weekly support at $0.000019, it will extend the decline to retest the weekly low at $0.000016.