Bitcoin price has recently cleared the $41K level after a steep decline following cooling inflation reports. As the Producer Price Index (PPI) for November reported figures lower than anticipated and the Consumer Price Index (CPI) showed a decline, the crypto market experienced a minor buying demand. As a result, meme coins like Shiba Inu’s surge continues; however, rising Netflow might soon bring a correction.
Shiba Inu’s Netflow Turns Positive
After experiencing a steep decline from recent highs, over $1.5 million in long-liquidation occurred for Shiba Inu price. However, the price has now recovered following news of cooling inflation rate. As a result, there’s an increased accumulation for SHIB near its lows.
Yet, the rising trend could be approaching a pause due to a significant increase in Netflow. Over the recent days, Netflow had been in the negative, with the outflow from exchanges exceeding the inflow, indicating that accumulation was occurring during price dips. However, with the metric now spiking and turning positive, inflows have begun to outweigh outflows again, following the rise in SHIB’s price.
This shift shows that investors who bought SHIB at lower prices are now moving their holdings to exchanges, potentially increasing selling pressure as they look for selling opportunities. This trend could soon exert bearish influence on the ongoing upward movement, especially if SHIB reaches a price peak, which might trigger sell-offs.
The current market sentiment is showing signs of bullishness, as a majority of traders are adopting a bullish position. According to data from Coinglass, approximately 52% of positions are now anticipating a price rise, with the long/short ratio at 1.0738. Conversely, 48% of positions are opposing this upward trend in buying pressure.
What’s Next For SHIB Price?
On the 4-hour price chart, bears are presenting a significant obstacle to SHIB’s upward movement at the $0.0000098 mark, as indicated by continuous rejections. However, buyers aim for an immediate surge as they prepare for a break above Fib channels. As of writing, SHIB price trades at $0.0000095, surging over 0.58% from yesterday’s rate.
There’s a potential for the price to face resistance at the 20-day Exponential Moving Average (EMA), valued at $0.00000961, a critical level to monitor. However, a surge above the 20-day EMA would imply that market sentiment remains upbeat, with traders capitalizing on price dips. This scenario enhances the likelihood of surpassing the $0.00001 threshold. Should this occur, the SHIB price might surge to $0.00001175.
Conversely, a drop below the immediate support of $0.000009 could imply that traders are actively taking profits. In this case, the price might face a further downturn towards the crucial support zone of $0.0000087-$0.0000075. Buyers could once more aggressively safeguard this level, considering it a potentially lucrative accumulation point for new gains.
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