Shiba Inu (SHIB) price has flashed some green signal this week as it hovered above the $0.0000065 range. Notably, on-chain data shows a positive uptrend in the social sentiment surrounding the Shiba Inu community. Is SHIB due for a bullish reversal?
On June 14, prominent Shiba Inu developer Shytoshi Kusama teased an upcoming product launch in a cryptic tweet. A day later, another key contributor “Lucie Shib” released a tweet stating that the memecoin project is alive and BUIDLing.
On-chain data shows that these critical announcements have positively impacted the social sentiment within the SHIB community. Here’s how it could trigger a bullish reversal.
Optimism is Growing Within the Shiba Inu Community
After a turbulent start to the month, Shiba Inu investors are growing optimistic again. Santiment’s Weighted Sentiment metric evaluates the mood of a particular blockchain community by comparing the number of positive comments about the project to the negative.
As shown below, SHIB Weighted Sentiment began to trend upward around June 9. As of June 16, it currently sits around -1.43. This represents a 13% positive improvement within the past week.
When Weighted Sentiment begins to rise during a price correction, it signals that a bullish reversal could be imminent. If the recent team announcement materializes into a widely accepted product launch, SHIB price could soon enter recovery mode.
SHIB Tokens Are Flying off the Shelves
Furthermore, the sharp drop in the balance of SHIB tokens available on exchanges is another critical factor pointing toward a bullish reversal.
The Balance on Exchanges represents the number of tokens investors have deposited across recognized cryptocurrency exchanges.
The Glassnode chart below illustrates how the SHIB holders have moved 4 trillion tokens out of exchanges between June 9 and June 16.
When investors move tokens into exchanges, they may be looking for opportunities to sell. Notably, this can be observed in the chart above. The 15% SHIB price drop on June 9 was preceded by a sharp rise in exchange supply on June 8.
However, with the SHIB Balance on Exchanges rapidly declining, the selling pressure is likely to decrease in the coming days.
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SHIB Price Prediction: Potential Bullish Reversal Toward $0.000010
According to IntoTheBlock’s Global Price distribution data, Shiba Inu will likely make a bullish reversal toward $0.000010.
But currently, the sell-wall mounted by 88,000 addresses that bought 32 trillion SHIB tokens at the $0.000008 mid-range could trigger a pullback.
Shiba Inu’s price will likely rally toward $0.000010 if that resistance folds.
Still, the Shiba Inu bears can negate this bullish narrative if the SHIB price drops below $0.000006. But the 19,260 addresses that purchased 8.82 trillion tokens at the minimum of $0.000006 could mount a buy-wall.
Nevertheless, the Shiba Inu bears could force a downswing to $0.000005 if that support level caves.
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