Required containers
- Shiba Inu (SHIB) trades above $0.0000042 after breaking a major downtrend.
- Five consecutive days of exiting the exchange show that investors are moving SHIB into private wallets, reducing the selling pressure.
- Derivatives data remains stable, with good liquidity and a long-short ratio that favors buyers.
Shiba Inu (SHIB) extended its recovery on Tuesday, trading above $0.0000042 after breaking a long-term downtrend. The development of chain activities and the promotion of derivatives show that the rise in power is increasing, which can lead to a change.
The foreign exchange shows a decrease in sales
On-chain data from CryptoQuant shows that investors have been slowly moving SHIB on the central exchange, which is generally seen as a positive sign for prices.
Data from the netflow exchange platform recorded five consecutive days of outflows since July 17, showing that more SHIB tokens are leaving the exchange than being placed.
This often indicates that investors are moving their wallets to long-term holdings instead of planning to sell, reducing the speed of selling in the market.
Continued depreciation of the exchange rate may support SHIB’s recovery if demand for purchases remains stable.
The market positioning in the container sector also shows increasing confidence among traders.
According to CoinGlassSHIB’s long-to-short ratio stood at 1.02 on Tuesday, indicating a slight preference for longs over shorts and indicating greater optimism that prices will continue to move.
Ideas are also supported by currency prices. SHIB futures were positive on July 17 and remained in strong territory at 0.0103% on Tuesday.
Positive currency prices indicate that traders with long positions are paying off those with short positions, a sign that bullish bets are outperforming bearish ones.
The combination of favorable currency rates and long-term to short-term leverage suggests that traders are increasing their leverage.
Characteristics of the Shiba Inu tree: Bulls look very resistant
From a technical perspective, SHIB has changed its long-term outlook after crossing a bearish trend since mid-May.
This burst makes the meme coin strong enough to further recover if the buying continues.
The next major resistance is around $0.0000045. A firm close above this level could trigger a move towards the 50-day Exponential Moving Average (EMA), which is also near $0.0000045.
Momentum indicators have also turned positive. The Relative Strength Index (RSI) has risen to 54 and is moving towards the 60 level, indicating that the bearish trend is ending.
Meanwhile, the Moving Average Convergence Divergence (MACD) has released an integrated strategy, expanding the green histogram bars that are encouraging technical corrections.
However, if the current recovery slows and sellers resume, SHIB may return to its annual low near $0.0000040, where buyers may try to protect the trend.
