Shiba Inu’s (SHIB) price action over the last 30 days has drawn a notable reaction from the meme coin holders. If sustained, this action could be crucial to a significant price increase for the token, which struggled for most of the last two quarters.

Currently, SHIB’s price is $0.000019, thanks to a 30% increase within the mentioned period. However, this might not be the end of the rally, even though the upswing has slowed down recently.

16 Trillion Shiba Inu Token Leave Exchanges

Data from Glassnode showed that SHIB holders had withdrawn over 16 trillion tokens from exchanges in the last seven days.  At the current price, this amounts to approximately $288 million.

When a large amount of cryptocurrency is withdrawn from an exchange, the circulating supply available for trading on that platform reduces. This can increase scarcity, particularly if the withdrawals involve a popular coin or a large portion of liquidity. 

In most cases, this leads to a potential price rise due to basic supply and demand principles. Therefore, if the exchange withdrawals continue to rise, then SHIB’s price might erase its 24-hour modest decline and climb higher.

Read more: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?

Another metric supporting such a sustained bounce is the Market Value to Realized Value (MVRV) Long/Short Difference. When the MVRV Long/Short Difference increases, it means that long-term holders have more unrealized profits than short-term holders, and this is typically a bullish sign.

On the other hand, a declining reading of the metric indicates otherwise and mostly indicates a bearish market condition. On September 26, the metric was 33.44%, coinciding with the period when SHIB’s price was $0.000014. 

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Author: Victor Olanrewaju