Shiba Inu’s value has surged by 25% since Paypal Inc. confirmed a partnership with Moonpay that enables US customers to purchase SHIB tokens. The collaboration aims to facilitate the seamless exchange between fiat currency and crypto assets like Shiba Inu in the United States. This announcement has been met with positive reactions from investors, resulting in an increase in SHIB’s price.
The chart above illustrates that the price of SHIB has risen by 25% since the confirmation of the Paypal partnership on May 2, 2024. This price movement indicates that the integration with Paypal has potentially sparked higher demand for SHIB in the past week. Moreover, recent on-chain trends suggest that SHIB holders anticipate the upward trend to continue for a longer period.
Santiment’s data on token supply across exchanges reveals that Shiba Inu investors held a total of 75.36 trillion SHIB tokens in exchange-hosted wallets on May 2. However, the latest data shows that as of May 7, the supply on exchanges has dropped rapidly to 75.04 trillion SHIB. This suggests that since May 2, investors have moved 32 billion SHIB, equivalent to around $800,000, into long-term storage, likely in anticipation of future price gains resulting from the Paypal partnership.
Although $800,000 is only a fraction of Shiba Inu’s daily average trading volumes, it represents a significant shift towards a long-term bullish sentiment among current holders.
At the time of writing on May 7, Shiba Inu is being traded at $0.000024 per token. The decline in exchange supply by 32 billion SHIB during the 25% price surge in May indicates that fewer holders are looking to make quick profits. This decrease in selling pressure positions SHIB for a potential breakout above the $0.000030 level during the next surge in demand.
However, the upper Bollinger band technical indicator suggests that SHIB bulls may face resistance at the $0.000027 level. If this resistance is overcome, Shiba Inu’s price could reach the $0.000030 milestone for the first time in over 60 days.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.
