Key takeaways

• Shiba Inu (SHIB) trades above $0.0000042 after breaking above a key descending trendline.
• Five consecutive days of exchange outflows suggest investors are moving SHIB into private wallets, reducing selling pressure.
• Derivatives data remains bullish, with positive funding rates and a long-to-short ratio favoring buyers.

Shiba Inu (SHIB) extended its recovery on Tuesday, trading above $0.0000042 after breaking above a long-standing descending trendline. Improving on-chain activity and strengthening derivatives data suggest bullish momentum is building, potentially setting the stage for further upside.

Exchange outflows point to reduced selling pressure

On-chain data from CryptoQuant indicates investors have been steadily moving SHIB off centralized exchanges, a trend often viewed as a positive signal for prices.

The platform’s exchange netflow data recorded five consecutive days of net outflows beginning on July 17, showing that more SHIB tokens are leaving exchanges than being deposited.

This pattern typically suggests investors are transferring tokens into private wallets for longer-term holding rather than preparing to sell, reducing immediate selling pressure in the market.

The continued decline in exchange balances could support SHIB’s ongoing recovery if buying demand remains steady.

Market positioning in the derivatives sector also points to improving confidence among traders.

According to CoinGlass, SHIB’s long-to-short ratio stood at 1.02 on Tuesday, indicating a slight preference for long positions over shorts and reflecting growing optimism that prices could continue moving higher.

Sentiment is further supported by funding rates. SHIB’s perpetual futures funding rate turned positive on July 17 and remained in bullish territory at 0.0103% on Tuesday. 

Positive funding rates indicate that traders holding long positions are paying those with short positions, a sign that bullish bets currently outweigh bearish ones.

The combination of positive funding rates and a favorable long-to-short ratio suggests traders are increasingly positioning for additional gains.

Shiba Inu price outlook: Bulls target higher resistance

From a technical perspective, SHIB has improved its near-term outlook after breaking above a descending trendline that had capped price action since mid-May.

The breakout places the meme coin in a stronger position to extend its recovery if buying momentum continues.

The next major resistance lies around $0.0000045. A decisive close above this level could pave the way for a move toward the 50-day Exponential Moving Average (EMA), which is also positioned near $0.0000045.

Momentum indicators have also turned more constructive. The Relative Strength Index (RSI) has climbed to 54 and is moving towards the 60 level, signaling that bearish momentum is fading. 

Meanwhile, the Moving Average Convergence Divergence (MACD) has produced a bullish crossover, with expanding green histogram bars reinforcing the improving technical outlook.

However, if the current recovery loses momentum and sellers regain control, SHIB could retreat toward its yearly low near $0.0000040, where buyers may attempt to defend the broader uptrend.

• Volume increased during the breakout attempt, with CoinGecko showing 24-hour trading volume of about $1.27 billion.

• XRP held above the $1.08-$1.10 area through the session, keeping the short-term recovery structure intact.

Technical Analysis

• The key short-term level is $1.13. A sustained break above it would confirm the triangle breakout watched by traders and bring $1.35 into focus.

• The hourly structure has tightened into a symmetrical triangle, with price compressing between lower highs and higher lows before the latest push higher.

• The daily chart remains more cautious. XRP is still trading inside a descending channel, with the 100-day and 200-day moving averages above price and sloping lower.

• The $1.24-$1.28 area remains the bigger resistance zone because it lines up with the channel’s upper boundary and major moving averages.

• Support remains strongest around $1.02-$1.06, where buyers have repeatedly stepped in over recent weeks.

What traders should watch

• $1.13 is the immediate breakout level. Holding above it would strengthen the short-term bullish setup.

• $1.14 is the next nearby level after marking the top of the latest 24-hour range.

• $1.24-$1.28 is the major resistance zone that XRP needs to clear before the daily chart turns meaningfully stronger.

• $1.02-$1.06 remains the key demand zone. Losing it would expose $0.88-$0.92.

U.S. Senator Bernie Sanders has renewed his criticism of the crypto industry, placing digital asset groups alongside other well-funded political interests during a campaign event supporting Minnesota Lieutenant Governor Peggy Flanagan’s Senate bid.

In a July 21 post on X, Sanders wrote, “Together, we are going to take on crypto, the AI industry, AIPAC and other billionaire super PACs.” He added that the campaign aimed to send Flanagan to the U.S. Senate. The comments focused on political spending and industry influence rather than cryptocurrency prices or blockchain technology.

Meanwhile, Sanders made the remarks while campaigning with Flanagan in Minneapolis. His statement grouped crypto with industries and political organizations that he says can use large financial resources to shape elections. He did not name a specific crypto company or political action committee in the post.

The timing comes as crypto-backed political groups spend heavily ahead of the 2026 midterm elections. As previously reported, Public Citizen estimated that the crypto industry had contributed about $189 million during the current election cycle by late June. Ripple- and Coinbase-backed groups, including Fairshake, have remained among the largest sources of industry political funding.

The spending has moved beyond national lobbying campaigns and into individual congressional races. Crypto.news reported in June that Fairshake-linked groups had deployed more than $8 million ahead of several closely watched primaries in Maryland, New York and Utah.

Fairshake and its affiliated groups have generally backed candidates viewed as supportive of clearer digital asset rules. Major industry companies, including Ripple, Coinbase and Andreessen Horowitz, have provided funding to the broader network over recent election cycles.

Crypto PACs become a larger force in the 2026 elections

The industry’s political spending has already appeared in several election results. In Maryland, as crypto.news reported, Adrian Boafo won a Democratic primary after receiving support from crypto-linked political groups. Fairshake affiliates also spent in other Democratic contests where digital asset policy formed part of the wider campaign debate.

The same network has also backed Republican candidates. In Alabama, a Fairshake-linked PAC spent more than $12 million supporting Barry Moore during his Senate primary and runoff campaign, according to related coverage. The activity shows that the groups have directed funding across party lines rather than limiting their spending to one political party.

Sanders’ latest remarks place him on the other side of that spending campaign. His criticism centers on the role of large political donors and corporate interests in elections. The July 20 statement did not call for a crypto ban or identify a new legislative proposal targeting digital assets.

Instead, Sanders framed crypto as one of several well-funded interests that Flanagan and her supporters would oppose. That distinction matters because his post focused on political influence rather than announcing a new position on individual cryptocurrencies, exchanges or blockchain networks.

Sanders has maintained pressure on crypto policy

The statement follows other recent moves by Sanders involving digital asset policy. In June, he joined Senator Elizabeth Warren and Representative Bobby Scott in asking the U.S. Labor Department to withdraw a proposal that could expand access to crypto and other alternative assets inside 401(k) retirement plans.

Moreover, the lawmakers argued that retirement savers could face volatility and weaker investor protections if plan providers added digital assets without enough safeguards. The Labor Department’s proposal would not require employers to offer crypto, but it would allow plan managers to consider alternative investments under existing fiduciary duties.

Sanders has also remained part of a wider group of lawmakers raising concerns about crypto regulation, investor protection and potential conflicts involving public officials. Those debates continue as Congress considers market structure rules and other legislation that could define how the U.S. treats digital asset companies.

At the same time, industry-backed political organizations have increased spending as those policy debates move through Congress. Previous crypto.news coverage found that Fairshake affiliates had spent about $7 million on selected Democratic primary races while lawmakers continued negotiating the CLARITY Act.

Minnesota race brings crypto politics onto the campaign stage

Sanders’ support for Flanagan now brings that national fight over political money into Minnesota’s Senate race. His July 20 message did not provide details about what “take on crypto” would mean in legislative terms, leaving the phrase tied mainly to the campaign’s broader criticism of wealthy industries and super PAC spending.

Crypto-funded groups have not remained on the sidelines in 2026. Their spending has already reached congressional primaries, Senate races and wider efforts to support candidates who favor industry-backed regulatory policies. Critics such as Sanders continue to frame that activity as part of a broader fight over large donors and political influence.

The debate is likely to remain active as the U.S. moves closer to the midterm elections and Congress continues work on digital asset legislation. Fairshake and allied groups still have substantial resources available, while lawmakers who oppose parts of the crypto industry’s policy agenda are making campaign finance a larger part of their response.

Wanchain’s Cardano-to-BNB Chain bridge has reportedly suffered an exploit that drained about 515 million NIGHT from its Cardano-side treasury, according to blockchain security firm BlockSec. 

The incident triggered heavy selling of Midnight’s native token and sent NIGHT down more than 30% within 24 hours.

BlockSec’s Phalcon said its initial investigation pointed to a possible flaw in the TreasuryCheck validator used by the bridge. The security firm stressed that its findings remain preliminary. Meanwhile, the Midnight Foundation said the incident affected third-party bridge infrastructure rather than the Midnight blockchain itself.

BlockSec points to possible signature reuse flaw

According to BlockSec, the reported Wanchain Cardano bridge exploit may stem from the way the TreasuryCheck validator creates messages for signing. The firm said the validator combines 14 fields of varying lengths without adding clear separators or recording the length of each field. That structure could allow different sets of data to produce the same final byte string.