Shiba Inu (SHIB) Primed for Breakout as Accumulation and Burn Rate Surge

• SHIB’s exchange outflow hit 111.8B tokens, signaling large-scale accumulation by long-term holders.
• Burn rate spiked 85.81% in 24 hours, removing over 15 million SHIB from circulation.
• Technical setup shows bullish potential, with key breakout levels around 0.00001606 and targets up to 0.00002834.

Shiba Inu (SHIB) is showing strong signs of accumulation after exiting a prolonged downturn. The popular meme token is now range-bound in a tight consolidation zone. This current market position presents a compelling setup for a potential bullish move for SHIB. 

Strong On-Chain Signs: SHIB Sees Massive Exchange Outflows, Higher Burn Rate

Data from CryptoQuant shows that SHIB transactions jumped from 6,200 to 7,510, yet the price remained stagnant. Such a divergence of rising activity with flat price action typically indicates either accumulation or distribution. 

In SHIB’s case, however, its net exchange outflow on May 20 was a massive -111.8 billion tokens. This particular data point firmly leans the argument toward accumulation. This kind of large-scale withdrawal of tokens to self-custody or cold wallets is often interpreted as a long-term bullish signal. It suggests investors are positioning for a future rally rather than looking to offload their SHIB tokens quickly. 

Adding to this picture is a significant 85.81% increase in SHIB’s burn rate, with 15.3 million SHIB tokens reported burned in the last 24 hours, tightening the token supply further.

SHIB Technicals: RSI Neutral, MACD Suggests Fading Bear Pressure

The technical chart for SHIB/USDT on the daily timeframe reveals critical signals.  Notably, the RSI currently stands at 51.51, sitting just above the neutral 50 line. This places SHIB in a non-overbought, non-oversold zone. 

Importantly, the RSI previously touched 60, showing bullish momentum before retracing. A move back above 60 could indicate the next leg up.

Related: 410 Trillion SHIB Burn Near: Analysts Weigh Shiba Inu’s Path to Price Gains

Meanwhile, the MACD lines are converging near the zero line, with a slight bullish crossover forming. The MACD histogram shows weakening negative momentum, suggesting bearish pressure is fading. 

Key SHIB Price Levels: Fibonacci Support and Potential Upside Targets

Finally, based on the Fibonacci setup anchored on the recent swing low ($0.00001027) to swing high ($0.00001606), several key levels emerge with immediate support at 0.382 Fib ($0.00001357), 0.5 Fib ($0.00001417), and 0.618 Fib ($0.00001478).

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Furthermore, these are ideal zones for accumulation if SHIB revisits them–1.618 Fib at $0.00001841, 2.618 Fib at $0.00002220, 3.618 Fib at $0.00002599, and 4.236 Fib at $0.00002834.