The cryptocurrency market has been in a slump lately, but a glimmer of hope might be emerging for Shiba Inu (SHIB), Chainlink (LINK), and Ethereum (ETH). Analysts are buzzing about a potential price reversal for these three coins, driven by a significant decrease in their exchange supply.
Emptying the Vaults
Since May 27th, the top 10 exchange wallets for SHIB, LINK, and ETH have seen a considerable drop in holdings. Shiba Inu’s exchange supply has shrunk by 2.4%, Chainlink by 2.9%, and Ethereum by a whopping 8.6%. This trend is generally interpreted as bullish by traders, suggesting investors are moving their coins off exchanges and into personal wallets, potentially for long-term holding.
Shiba Inu: A Price Crossroads
At the time of writing, SHIB sits at a crucial juncture. The price is hovering around $0.00002175, facing resistance at $0.000022. Breaching this barrier could propel SHIB towards $0.000025 and even $0.00003. However, increased selling pressure could drag it down to $0.00002 or even lower.
Technical indicators paint a mixed picture for SHIB. The MACD suggests a possible slowdown or reversal in momentum, while the RSI indicates a neutral market position. However, the RSI nearing 30 hints at an oversold condition, which often precedes a price rebound. The decreasing exchange supply and frequent burns could also fuel a SHIB resurgence.
Chainlink: Long-Term Optimism
Chainlink is currently trading at $15.32, down slightly. While the recent decline triggered long liquidations, the diminishing exchange reserve suggests a potential long-term price increase due to reduced supply. Notably, the LINK price has remained profitable over the past month despite the recent downturn, hinting at underlying bullish sentiment.
Ethereum: ETF Speculation Fuels Excitement
Ethereum has witnessed the most significant drop in exchange supply, potentially indicating strong accumulation. This news coincides with positive regulatory developments. Crypto analyst Michaël van de Poppe suggests a potential Ethereum ETF listing this summer, sparking anticipation of a final correction before a substantial price surge.
Also Read: Shiba Inu Price Prediction: Can SHIB Reach $0.00022 This Month? Experts Weigh In
A Bright Future?
The approval of a Spot Ethereum ETF could significantly impact ETH’s price, potentially pushing it above $4,000. Standard Chartered even projects a price exceeding $8,000 by year-end, fueled by an influx of institutional investment.
While the future remains uncertain, the decreasing exchange supply for SHIB, LINK, and ETH is a welcome sign for hodlers (hold on for dear life) and could signal a potential reversal in the current bearish trend. However, investors should always conduct their own research before making any financial decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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