Altcoin

Shiba Inu, Chainlink, Ethereum Exchange Supply Drops, Price To Recover?

Published

6 months ago

June 14, 2024

In recent developments, the top 10 exchange wallets for altcoins like Shiba Inu (SHIB), Chainlink (LINK), and Ethereum (ETH) have seen a significant decrease in their holdings since May 27. Specifically, Shiba Inu’s exchange supply has shrunk by 2.4%, Chainlink by 2.9%, and Ethereum by 8.6%.

Moreover, such reductions in exchange reserves are generally interpreted as bullish indicators by traders. Hence, a potential for price recovery could be witnessed for SHIB, ETH, and LINK. Currently, all these cryptocurrencies are grappling with a downtrend.

Shiba Inu (SHIB) Price Analysis

At the time of writing, the SHIB price was $0.00002175, up by 0.38% on Friday, June 14. This price movement places Shiba Inu at a pivotal point, encountering a significant barrier at $0.000022. If Shiba Inu can surpass this resistance, it may climb to $0.000025, with the possibility of reaching $0.00003.

On the other hand, increased selling pressure could push Shiba Inu down to $0.000021, and it might fall further to $0.00002 if market sentiment deteriorates. Whilst, technical analysis indicates that SHIB might be entering a consolidation phase. The MACD indicator reveals a convergence towards the signal line, hinting at a possible slowdown or reversal in momentum.

With the MACD line currently beneath the signal line, it signifies weak bullish momentum. Currently, the Shiba Inu RSI is at 37, suggesting a neutral market stance, as SHIB is neither overbought nor oversold. However, the RSI is nearing 30, which signals a oversold condition is looming. In the aftermath of such conditions, the price generally rebounds.

Moreover, the reduction in Shiba Inu supply due to decreasing exchange reserve and frequent burns could also catalyze a rebound. On the flip side, most oscillators and moving averages on the daily chart are issuing sell signals. The 50-EMA being above the 20-EMA suggests a potential downward trend.

Also Read: Shiba Inu Coin Bull Run Ahead As SHIB Burn Rate Spikes Further

Chainlink (LINK) Outlook

At press time, Chainlink is traded at $15.32, down by 0.90%. This decline has triggered long liquidations, which account for over 95% of total liquidations, signaling a short-term price decline. However, the diminishing exchange reserve could lead to a rebound in the long term due to a reduced supply.

As exchange supplies decrease, it often points to accumulation by investors, which can drive prices up as supply dwindles. Moreover, the Chainlink price has sustained a profit of over 14% in the last 30 days despite the recent bearish turn. Hence, it could mirror the momentum for a reversal as the LINK open interest has also surged.

Ethereum (ETH) Prospect Following ETF Approval

According to Santiment, Ethereum’s exchange supply has seen the most significant reduction among the three cryptocurrencies, dropping by 8.6%. This substantial decrease is viewed positively by bullish traders as it may indicate strong accumulation and potential for future price increases.

Recently, Ethereum’s market narrative is also being shaped by regulatory developments. Crypto analyst Michaël van de Poppe highlighted a statement from SEC Chair Gary Gensler, suggesting that an Ethereum ETF might be listed during the summer. This anticipation signals a final correction before a substantial price surge, according to Poppe.

The approval of Spot Ethereum ETF S-1 filings is expected to have a profound impact on ETH’s price. It could potentially push the ETH price above $4,000 immediately after the ETF listing. Furthermore, Standard Chartered has projected that this development could even drive Ether’s price to exceed $8,000 by the end of the year. Such optimistic forecasts are underpinned by the expected influx of institutional investment following the ETF’s approval.

Also Read: Whale Heavily Bags SHIB, ETH, CRV, & Others, What’s Next?