Shiba Inu (SHIB) Near-Term Future Hinges on Support at $0.00001187

• Shiba Inu is oscillating between $0.00001408 resistance and $0.00001187 support and is waiting for a breakout move.
• The Holding Retention Rate rises to 96.68%, indicating a strong belief amongst investors amid a lack of price appreciation.
• SHIB exchange balances decrease by 0.31% in two weeks, indicating long-term holding and less sell pressure.

Shiba Inu has continued to stay within its narrow upward channel, while investor conviction is consistent and impressive. On-chain data show rising confidence with the holder retention rate rising and an exchange balance overbought. While the price movements have been low in this instance, these signals suggest that a vast majority of SHIB holders continue to believe in the long-term viability of the asset.

The SHIB daily chart indicates that the coin oscillated between the coin’s resistance at $0.00001408 and the coin’s support at $0.00001187 over the past month. This very narrow-band trendline represents uncertainty, but it also shows the areas that traders are closely watching. A significant break to either side, though, can be what decides the next major trend in the token.

Source: TradingView

Shiba Inu Strengthens as Exchange Supply Falls

A similar high level of investor conviction is supported by the data from Glassnode. The Holder Retention Rate tracking, calculating holding balances at 30-day intervals, has improved gradually over time to 96.68%. So this means that the majority of SHIB users are content to just keep holding their tokens (despite there being no short-term gains). 

Source: Glassnode

Also Read: SHIB on the Brink: $0.00002050 Target Could Trigger Explosive Gains

On the other hand, SHIB is still falling on centralized exchanges. Over the past two weeks, exchange-held supply has fallen 0.31%. When tokens are removed from circulation through the holder’s custody, it is prone to signify a somewhat longer-term holding stance and would reduce the overall liquidity base available for immediate sell-offs. Reduced exchange balances can translate into less short-term downside pressure and a basis for future up-moves.

Source: Glassnode

SHIB Breakout as Burns Surge

Market watchers speculate that this combination of strong holding patterns and shrinking sell-side liquidity may help propel Shiba Inu higher. A potential buy signal is for SHIB to retrace all the way up to the resistance level before it breaks back out and moves toward the price cliff at $0.00001503. On the downside, price could continue to lose momentum and dip beneath $0.00001187 to retest near $0.000010004.

In this dynamic Shiba Inu ecosystem, another facet has seen a surge in token burns. According to these statistics by Shibburn, in the last 24 hours, 1,466,765 SHIB were removed from circulation forever; in other words, the burn rate in the last 24 hours was 1957.38%. 

While the circulating supply is an immense 589,247,730,175,037, the consistent burns act as a secular deflationary force to the network over time, which some holders regard as price stability.

Source: SHIBBurn

For the moment, Shiba Inu has reached a crossroads. As the support is maintained, buying momentum may build: the token can traverse into the higher areas of its box. If pressure is further raised, however, SHIB could test lower supports. Either way, it’s clear the efforts of its community of true believers would play a defining role in certain aspects of the coin’s near-term future.

Also Read: Shiba Inu Price Analysis: Can SHIB Sustain Momentum Toward $0.00003?