Shiba Inu (SHIB), renowned as one of the top meme coins in the cryptocurrency market, is currently positioned for a substantial price rally. After more than six weeks of consolidation, SHIB appears ready to break free from its stagnant phase. Despite other leading crypto assets witnessing notable rallies, SHIB has been seemingly struggling within its consolidation phase. However, recent developments suggest a promising shift.
Why is the SHIB Price Increasing?
Recently, on-chain analytics from IntoTheBlock highlighted a remarkable surge in large transaction volumes for SHIB, increasing by over 150% in just 24 hours. This uptick suggests robust participation from significant players, often referred to as ‘whales.’ Such increased activity has formed a bullish price action pattern, indicating a potential upside rally on the horizon. This surge in transaction volume is a key indicator of strong market interest, which could propel SHIB’s value upwards.
Shiba Inu (SHIB) Technical Analysis and Upcoming Levels
Delving into the technical aspects, experts have identified a bullish inverted head-and-shoulders pattern for SHIB on both weekly and daily charts. This pattern is a classic signal of a potential trend reversal and indicates that significant acquisitions or accumulation of SHIB are underway by whales and large investors. According to Trading View, if SHIB manages to surpass the neckline of this bullish pattern at the $0.000020 mark and sustain a daily close above it, the meme coin has the potential to surge by an impressive 34%, reaching as high as $0.000028 in the upcoming days.
Moreover, SHIB’s current trading above the 200-day Exponential Moving Average (EMA) on the daily chart signals a prevailing uptrend. The recent formation of a golden crossover between the 50-day and 200-day EMAs further reinforces a bullish outlook for SHIB, enhancing investor confidence in its potential price rally.
Bullish On-Chain Metrics
SHIB’s positive trajectory is further backed by a set of bullish on-chain metrics. Coinglass, an on-chain analytics firm, reports that SHIB’s long/short ratio stands at 1.03, reflecting a general bullish sentiment among traders. Moreover, the open interest for SHIB has surged by 19% over the past 24 hours and 8.5% in the last four hours, suggesting an increasing number of traders are taking interest in the coin.
This rise in open interest indicates growing confidence and positions among traders, setting the stage for a potential breakout. Such dynamics suggest that SHIB is not only attracting new investors but is also poised to maintain momentum in the market.
Current Price Momentum
As of the latest update, SHIB is trading close to the $0.000020 mark, experiencing a price increase of over 7% in the last 24 hours. During this time, its trading volume has also seen a 30% rise, signaling heightened market participation as the price nears a critical breakout level. This increased activity is indicative of a growing anticipation among investors, looking to capitalize on the potential upside movement.
In conclusion, Shiba Inu (SHIB) is showing promising signs of a significant rally, driven by strong on-chain metrics, technical patterns, and growing market interest. As the crypto community keeps a close watch, SHIB’s journey towards breaking new ground remains a focal point for both traders and enthusiasts alike.
