Key takeaways
- Shiba Inu (SHIB) trades above $0.0000042 after breaking above a key descending trendline.
- Five consecutive days of exchange outflows suggest investors are moving SHIB into private wallets, reducing selling pressure.
- Derivatives data remains bullish, with positive funding rates and a long-to-short ratio favoring buyers.
Shiba Inu (SHIB) extended its recovery on Tuesday, trading above $0.0000042 after breaking above a long-standing descending trendline. Improving on-chain activity and strengthening derivatives data suggest bullish momentum is building, potentially setting the stage for further upside.
Exchange outflows point to reduced selling pressure
On-chain data from CryptoQuant indicates investors have been steadily moving SHIB off centralized exchanges, a trend often viewed as a positive signal for prices.
The platform’s exchange netflow data recorded five consecutive days of net outflows beginning on July 17, showing that more SHIB tokens are leaving exchanges than being deposited.
This pattern typically suggests investors are transferring tokens into private wallets for longer-term holding rather than preparing to sell, reducing immediate selling pressure in the market.
The continued decline in exchange balances could support SHIB’s ongoing recovery if buying demand remains steady.
Market positioning in the derivatives sector also points to improving confidence among traders.
According to CoinGlass, SHIB’s long-to-short ratio stood at 1.02 on Tuesday, indicating a slight preference for long positions over shorts and reflecting growing optimism that prices could continue moving higher.
Sentiment is further supported by funding rates. SHIB’s perpetual futures funding rate turned positive on July 17 and remained in bullish territory at 0.0103% on Tuesday.&
Positive funding rates indicate that traders holding long positions are paying those with short positions, a sign that bullish bets currently outweigh bearish ones.
The combination of positive funding rates and a favorable long-to-short ratio suggests traders are increasingly positioning for additional gains.
Shiba Inu price outlook: Bulls target higher resistance
From a technical perspective, SHIB has improved its near-term outlook after breaking above a descending trendline that had capped price action since mid-May.
The breakout places the meme coin in a stronger position to extend its recovery if buying momentum continues.
The next major resistance lies around $0.0000045. A decisive close above this level could pave the way for a move toward the 50-day Exponential Moving Average (EMA), which is also positioned near $0.0000045.
Momentum indicators have also turned more constructive. The Relative Strength Index (RSI) has climbed to 54 and is moving towards the 60 level, signaling that bearish momentum is fading.&
Meanwhile, the Moving Average Convergence Divergence (MACD) has produced a bullish crossover, with expanding green histogram bars reinforcing the improving technical outlook.
However, if the current recovery loses momentum and sellers regain control, SHIB could retreat toward its yearly low near $0.0000040, where buyers may attempt to defend the broader uptrend.
The post Shiba Inu tops $0.0000042 as exchange outflows and bullish derivatives boost sentiment appeared first on CoinJournal.
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