The cryptocurrency market witnessed a surge in Shiba Inu (SHIB) following a significant announcement from payments giant PayPal. This article explores the impact of the PayPal partnership on SHIB’s price and investor sentiment.
PayPal Integration Fuels SHIB Price Increase
On May 2nd, MoonPay, a crypto payment facilitator, announced a strategic collaboration with PayPal. This partnership aims to streamline the buying process of cryptocurrencies like SHIB for U.S. residents by enabling convenient fiat-to-crypto conversions through MoonPay’s platform. The news was met with positive reactions from investors, leading to a notable rise in SHIB’s price.
Read Also: PayPal Ventures Fully into Crypto With A Dollar-Pegged Stablecoin for Payments
Data Reveals Long-Term SHIB Holder Confidence
An analysis of trading data highlights a crucial shift in investor sentiment. According to on-chain data from Santiment, the supply of SHIB held on cryptocurrency exchanges has experienced a significant decline since the PayPal partnership confirmation.
This data suggests that investors are moving their SHIB holdings from exchange wallets to long-term storage solutions, potentially indicating a belief in future price appreciation.
Specifically, between May 2nd and May 7th, the total amount of SHIB held on exchanges dropped from 75.36 trillion to 75.04 trillion. While this represents a transfer of only 32 billion SHIB (approximately $800,000), it signifies a symbolic movement towards a long-term bullish outlook among SHIB holders. Though this amount is a small fraction of SHIB’s daily trading volume, it reflects a growing confidence in the token’s long-term potential.
SHIB Price Forecast: Potential for Further Growth
SHIB’s recent price surge and the decline in exchange holdings suggest that investors are less inclined to sell their SHIB tokens for short-term profits. This reduced selling pressure could pave the way for a significant price increase in the event of renewed buying activity.
However, technical indicators like the upper Bollinger Band reveal a potential resistance level around $0.000027. If SHIB can overcome this hurdle, it could recapture the $0.000030 mark, a level not seen in over two months.
Read Also: Does PayPal Indeed Support XRP As Rumored? Updated Terms and Conditions Have the Answer
The PayPal collaboration has undoubtedly played a key role in the recent rise of SHIB’s price. More importantly, the movement of SHIB tokens from exchanges to long-term storage suggests a growing confidence among investors in the cryptocurrency’s long-term prospects.
While short-term price predictions are inherently challenging, the current market sentiment appears to favor a potential price increase for SHIB, with overcoming the $0.000027 resistance level being a crucial step in this direction.
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