Shiba Inu Market Update (March 20)

On March 20, Shiba Inu (SHIB) saw large holder outflows of 5.54 trillion SHIB, the highest in over a month. This significant activity occurred while SHIB was trading at about $0.000013. After a prolonged decline since early February, SHIB is attempting to stabilize from a technical perspective.

Current Trading Status

With a modest recovery from a local support range near $0.0000122, SHIB is currently trading around $0.0000131, reflecting an increase of 1.62% for the day. However, the 50-day and 100-day moving averages are still sloping lower, indicating a persistent bearish trend.

A short-term reversal could occur if SHIB breaks above the descending trendline and recovers the $0.0000142 level. The RSI metrics indicate weak bullish conviction due to low volume, but upward movement remains possible if momentum improves.

On-Chain Dynamics

Recent on-chain dynamics show a 49.55% increase in seven-day changes, primarily due to the March 20 spike, despite a 68.33% drop in 30-day outflows. This sudden withdrawal raises the likelihood of accumulation by large wallets or a reallocation to cold storage, both usually indicative of forthcoming bullish sentiment.

The absence of immediate price spikes from the outflow suggests tokens were likely not sold on exchanges. As SHIB consolidates near multi-month lows, this may signal a potential long-term positioning change by large holders, consistent with broader market caution.

Future Outlook

While the price structure remains fragile, whale activity and the strong support at $0.0000122 indicate that SHIB may be approaching a significant pivot zone. Any volume-confirmed break above resistance could initiate a short relief rally toward the 100-day MA zone, located around $0.0000160. Traders should remain vigilant, as the next phase of SHIB’s market trajectory will likely depend on substantial wallet movements and subsequent price reactions.