Shiba Inu (SHIB), the celebrated and second-largest meme coin, is on the brink of a major upside rally after a period of consolidation that has spanned over six weeks. Despite the notable upward movements in other top crypto assets, SHIB has remained in a consolidation phase, seemingly grappling with its price trajectory.
Why is the SHIB Price Increasing?
In recent developments, the on-chain analytics firm IntoTheBlock has reported a staggering increase of over 150% in the large transaction volume of SHIB within a span of just 24 hours. This surge in large transactions is indicative of robust activity from whale investors, reflecting a bullish price action pattern for SHIB. The significant transaction volume is a telltale sign of a potential upside rally, suggesting that SHIB is gearing up for an impressive price movement.
Shiba Inu (SHIB) Technical Analysis and Upcoming Levels
Adding to the optimistic on-chain metrics, technical analysis experts have identified a bullish inverted head-and-shoulders price pattern for SHIB across both weekly and daily time frames. This pattern, coupled with the ongoing price consolidation, signifies substantial acquisitions or accumulation of SHIB by whale investors and large stakeholders. According to recent price action and historical momentum, a breakthrough past the neckline of this bullish pattern at the $0.000020 level, with a daily candle closure above it, could propel SHIB to soar by 34%, reaching the $0.000028 mark in the near future.
Currently, SHIB is trading above the 200-day Exponential Moving Average (EMA) on the daily time frame, which signals an uptrend. Furthermore, the formation of a golden crossover between the 50-day and 200-day EMAs serves as a bullish indicator for SHIB, reinforcing the potential for a price surge.
Bullish On-Chain Metrics
SHIB’s promising outlook is further bolstered by its on-chain metrics. Data from the analytics firm Coinglass highlights that SHIB’s long/short ratio is currently at 1.03, reflecting a bullish sentiment among traders. In addition, SHIB’s open interest has seen a remarkable rise, escalating by 19% over the last 24 hours and 8.5% in the past four hours. This increasing open interest demonstrates the burgeoning interest of traders in SHIB, setting the stage for a breakout as the meme coin garners heightened attention.
Current Price Momentum
As of the latest update, SHIB is trading close to the $0.000020 level, having experienced a price increase of over 7% within the past 24 hours. During the same timeframe, its trading volume has surged by 30%, which points to an intensifying participation as SHIB approaches the critical breakout level.
Overall, the combination of favorable technical patterns, bullish on-chain metrics, and rising trader interest positions Shiba Inu for a potential rally, making it a closely watched asset in the crypto market.
