Shiba Inu is trading at a decisive price zone as the broader crypto market extends its decline. While major assets record sharper losses, the meme coin has shown relative strength. Analysts say the current level could determine whether SHIB rebounds or slides to new lows. On-chain data and technical indicators now shape expectations around its next move.
Shiba Inu holds critical support as accumulation signals emerge
Shiba Inu is down 4% over the past 24 hours, a smaller decline compared with Bitcoin’s 8% drop, Ethereum’s 8.3% loss, and XRP’s 10% slide. Despite the weakness, SHIB is holding a historically important support level. The token is currently trading at $0.000006241, sitting within a key local demand zone.
As a result, bulls and bears remain locked in a tight battle around this zone. A breakdown could expose the token to fresh record lows. A successful defense could instead open the door to a rebound toward higher resistance levels.
On-chain metrics suggest accumulation rather than distribution. According to CryptoQuant data, Shiba Inu recorded a negative exchange netflow of 5.18 billion SHIB over the past 24 hours. This indicates that more tokens are leaving exchanges than entering them. Such activity has been accumulated by buyers defending support.
Exchange reserve data reinforces this trend. SHIB reserves dropped from 81.5 billion tokens on February 4 to 81.4 billion today. This reflects continued withdrawals for longer-term holding. The reduction signals buying pressure as traders remove supply from trading platforms.
Analysts point to momentum shifts and recovery targets
Market analyst SwallowAcademy is among those suggesting that Shiba Inu may have already bottomed. In a recent TradingView analysis, he said there was no strong logical reason for further downside at current levels. He cited improving momentum indicators and stabilizing price action.
Technical data supports this view. The daily RSI stands at 31.45, hovering near oversold conditions. Meanwhile, red MACD histogram bars continue to shrink, signaling slowing bearish momentum. Shiba Inu also holds a positive funding rate of 0.0042%, reflecting a slightly bullish bias among derivatives traders.
Based on these signals, SwallowAcademy expects buyers to regain control. He identified the 200-day exponential moving average at $0.00000992 as the first upside target. However, analysts note that SHIB must first reclaim the 100-day moving average at $0.000008290. That level previously capped gains during the early January rally.
Source: https://coinpaper.com/14325/shiba-inu-price-defends-key-level-as-on-chain-data-shows-buying
