Shiba Inu's Breakout Potential: On-Chain Strength Meets Exchange Outflows

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Shiba Inu's Breakout Potential: On-Chain Strength Meets Exchange Outflows
Shiba InuSHIBCryptocurrency
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Shiba Inu (SHIB) experienced a recent price surge and breakout, fueled by increasing on-chain activity and bullish technical indicators. However, a spike in exchange inflows raises concerns about potential selling pressure in the near term.

On-chain activity has remained strong, but high exchange netflows could signal near-term selling pressurea massive 480% upside potential. However, it’s worth asking a very important question – Is the breakout alone enough to spark a significant rally?At the time of press, SHIB was priced at $0.00001393, following a 3.50% hike in the last 24 hours. Its RSI seemed to be sitting at 57.54, indicating that there is still room for northbound momentum before hitting overbought conditions.

The RSI had not yet crossed the critical 70 threshold, suggesting the rally could continue without an immediate pullback. Additionally, the Bollinger Bands revealed a price range between $0.00001389 and $0.00001407, reflecting tightening price action. This constriction, coupled with the falling wedge breakout, aligns with a potential bullish move – Confirmation of the likelihood of a breakout.Shiba Inu’s on-chain metrics highlighted increasing engagement from investors. Over the last 24 hours alone, the transfer volume surged by a massive 2,154.62%, hitting 2.49 trillion SHIB at press time.

In terms of wallet activity, 6,178 active addresses represented a 5.68% hike – A sign that more wallets are transacting with SHIB. Similarly, the number of transactions grew by 21.05%, totaling 7,315. These on-chain activities can be interpreted as growing investor confidence in the token, possibly validating the bullish setup.While the metrics underlined strong momentum, one cautionary signal seemed to be the exchange netflows.has been deposited into exchanges – A 15,321.

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