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.
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
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’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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