Shiba Inu (SHIB) Is Showing Strong Signs of Accumulation After Exiting a Prolonged Downturn

Shiba Inu (SHIB) is showing strong signs of accumulation after exiting a prolonged downturn. The popular meme token is now range-bound

Shiba Inu (SHIB) is showing strong signs of accumulation as it exits a prolonged downturn and trades in a tight consolidation range. This current market position presents a compelling setup for a potential bullish move for SHIB.

Shiba Inu: Massive Exchange Outflows Point Toward Accumulation

Data from CryptoQuant shows that SHIB transactions on May 20 jumped from 6,200 to 7,510, yet the price remained largely stagnant throughout the day. Usually, such a divergence of rising activity with flat price action indicates either accumulation or distribution.

However, SHIB's net exchange outflow on May 20 was a massive -111.8 billion tokens, strongly arguing for accumulation. This kind of large-scale withdrawal of tokens to self-custody or cold wallets is often viewed as a long-term bullish signal. It suggests investors are positioning for a future rally rather than looking to offload their SHIB tokens quickly.

Additionally, there's been a significant 85.81% increase in SHIB's burn rate, with 15.3 million SHIB tokens reported burned in the last 24 hours, further tightening the token supply.

Shiba Inu Technical Analysis: RSI Neutral, MACD Suggests Fading Bear Pressure

Looking at the technical chart for SHIB/USDT on the daily timeframe, several key signals emerge. Notably, the Relative Strength Index (RSI) is currently at 51.51, sitting just above the neutral 50 line, placing 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.

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.

Shiba Inu Fibonacci Levels: Immediate Support and Potential Upside Targets

Finally, based on the Fibonacci setup anchored on the recent swing low ($0.00001027) to swing high ($0.0