Shiba Inu FX balances hit new low as SHIB recovers from golden ratio

The Shiba Inu ecosystem has been the subject of updates in recent days as developers seek to bolster the cryptocurrency’s long-term prospects. Behind the scenes, on-chain data also reveals a bullish trend among SHIB investors, with the exchange balance falling to new lows.

Adding to the bullish case is the fact that SHIB price has jumped directly from the key Fibonacci ratio level of 0.618, also known as the “golden ratio”. These metrics, in combination, are particularly setting the stage for a price surge that could see SHIB rise in the current market cycle.

SHIB FX balances hit new lows

According to CryptoQuant’s SHIB analytics dashboard, the total reserve of SHIB on cryptocurrency exchanges has been in freefall for most of this year. At the time of writing, the SHIB exchange reserve now stands at around 150 billion tokens, up from 164 billion SHIB tokens on February 29. This means that the total number of SHIB tokens in crypto exchange reserves has fallen by 14 trillion SHIB in less than two months.

The drop in foreign exchange reserves is a bullish indicator for SHIB as it shows that holders are less likely to sell their coins and instead choose to store them in private wallets. This outflow from exchanges has particularly worsened in recent weeks, with network data revealing an increase in Shiba Inu whale activity. One example is the recent accumulation of 237.8 billion SHIB tokens worth $6.9 million by a new whale address.

Furthermore, recent price action over the past few months has seen the price of SHIB bounce from the 0.618 Fibonacci ratio level on April 14, setting the stage for a golden ratio recovery. This is a key support level according to the Fibonacci tool, and the rebound indicated the start of a major uptrend. SHIB found this recovery on April 15 around the $0.00002117 price level after a correction of over 51% from its yearly high of $0.00004400.

Shiba Inu for $0.0001?

At the time of writing, SHIB is trading at $0.00002702, up 19% in the last seven days. Interestingly, SHIB price has risen over 27% since its bounce above the golden cross to confirm that the crypto has completely reversed to bullish sentiment.

Fundamentals point to a continued rise in the price of SHIB in the coming days amid widespread interest and adoption. One of them is the recent $12 million investment raised by the Shiba Inu team to develop a layer 3 blockchain on top of Shibarium.

With supply on exchanges decreasing and SHIB construction increasing after bouncing from a key Fibonacci level, the ingredients are set for a bounce to $0.00004400 or higher. If SHIB manages to overcome this resistance, it will open a run towards $0.00008616, which would represent a 218% increase from the current price.