Why is the SHIB Price Increasing?
Shiba Inu (SHIB), the renowned meme coin, has captured attention as it prepares for a notable surge following a prolonged consolidation period of over six weeks. Despite other leading cryptocurrencies experiencing substantial upward movements, SHIB has lingered in consolidation, seemingly struggling to break out. However, recent developments suggest a change is imminent.
According to the on-chain analytics firm IntoTheBlock, SHIB has witnessed a remarkable increase in large transaction volumes, surging by over 150% within the past 24 hours. This significant uptick in large transactions indicates robust participation from whales, hinting at a bullish trend. The increased transaction volume aligns with technical patterns suggesting a potential upside rally for SHIB.
Shiba Inu (SHIB) Technical Analysis and Upcoming Levels
Delving into the technical aspects, analysts have identified a bullish inverted head-and-shoulders pattern forming on both weekly and daily time frames for SHIB. This pattern, coupled with ongoing price consolidation, reflects significant acquisitions or accumulation by whales and large investors, indicating a potentially bullish outlook.
Based on historical momentum and recent price action, a breakthrough above the neckline of this bullish pattern at the $0.000020 level could trigger a remarkable surge. Should SHIB manage to close a daily candle above this level, there is a strong possibility of a 34% increase, bringing the price to the $0.000028 mark in the coming days.
Currently, SHIB is trading above the 200-day Exponential Moving Average (EMA) on the daily time frame, signaling an upward trend. Furthermore, the formation of a golden crossover between the 50-day and 200-day EMAs serves as a bullish signal for the asset, indicating the potential for further price advancements.
Bullish On-Chain Metrics
The favorable outlook for SHIB is further substantiated by bullish on-chain metrics. Data from the on-chain analytics firm Coinglass reveals that SHIB’s long/short ratio stands at 1.03, reflecting bullish sentiment among traders. This positive sentiment is bolstered by a notable increase in open interest, which has surged by 19% over the past 24 hours and 8.5% in the last four hours.
The escalating open interest indicates a growing interest among traders in the meme coin, with more open positions being established as SHIB approaches a potential breakout. This heightened enthusiasm suggests a promising trajectory for SHIB in the near future.
Current Price Momentum
As of the latest updates, SHIB is trading near the $0.000020 level, marking a significant price surge of over 7% in the past 24 hours. The trading volume has also increased by 30%, reflecting heightened participation and interest as the price approaches the critical breakout level.
Overall, the combination of bullish technical patterns, strong on-chain metrics, and increasing trading volume positions SHIB for a potential breakout, attracting the attention of traders and investors eager to capitalize on the anticipated surge.
