Shiba Inu (SHIB) Set for 18% Rally, The Reason
Shiba Inu (SHIB), the popular second-largest cryptocurrency, is poised to surge in price as it formed a bullish price action pattern on the four-hour time frame. Additionally, overall market sentiment appears to be shifting from a downtrend to an uptrend, with SHIB appearing to break out of its long-term consolidation or channel pattern.
Shiba Inu (SHIB) Technical Analysis and Upcoming Levels
According to expert technical analysis, SHIB It looks bullish as it is currently at the bottom of a channel pattern, or the lower boundary of the consolidation area, where it has been for the past 32 days.
The SHIB daily chart shows that the meme coin has been trading within a range between $0.00002013 and $0.00002466 and is currently at the lower border of the area.
When checking the SHIB four-hour chart, this appears to be the fifth time the meme coin has dropped to lower levels. Based on recent price action and historical price momentum, there is a high chance that it will surge by 18% to $0.00002466 levels in the coming days.
On the positive side, SHIB has a relative strength index (RSI) of 44.37, which indicates a bullish signal and hints at potential price reversal and upward momentum.
SHIB outflows $32M from exchanges
However, long-term holders appear to be accumulating the tokens, judging by the bullish price action and potential upward momentum, as revealed by On-Chain Analytics coin glass. Spot inflow and outflow data shows that the exchange witnessed over $32 million worth of SHIB outflows in the past 48 hours.
This massive outflow hints at potential accumulation, as outflows are when assets move from exchanges to investor wallets. It also indicates potential buying opportunities, upside potential, and upcoming buying pressure.
When combining this on-chain indicator with technical analysis, bulls appear to have begun to take control, helping the meme coin reach the upper boundary of the consolidation zone.
Current Price Momentum
Currently, SHIB is trading close to $0.000021, with the price down by more than 1.85% in the past 24 hours. During the same period, its trading volume fell by 58%, indicating that trader and investor participation was lower than the previous day.
