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Shiba Inu (SHIB), the popular and second-largest meme coin, is now poised for a significant upside rally after consolidating for more than six weeks. It has been observed that while top crypto assets experience notable upside rallies, SHIB remains in a consolidation phase and appears to be struggling.
Why is the SHIB Price Increasing?
Recently, the on-chain analytics firm IntoTheBlock revealed that the large transaction volume of the SHIB meme coin has surged by over 150% in the past 24 hours.
This significant increase in large transactions indicates strong participation from whales, as SHIB has formed a bullish price action pattern. Moreover, this notable transaction volume suggests a potential upside rally.
Shiba Inu (SHIB) Technical Analysis and Upcoming Levels
In addition to the current bullish on-chain metrics, expert technical analysis suggests that SHIB has formed a bullish inverted head-and-shoulders price pattern on the weekly and daily time frames. Meanwhile, the ongoing price consolidation indicates significant acquisitions or accumulation of SHIB by whales and large investors.
Based on recent price action and historical momentum, if SHIB breaks through the neckline of the bullish pattern at the $0.000020 level and closes a daily candle above it, there is a strong possibility that the meme coin could surge by 34%, reaching the $0.000028 level in the coming days.
Currently, SHIB is trading above the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. Additionally, the 50-day and 200-day EMAs have formed a golden crossover, which is a bullish signal for the asset.
Bullish On-Chain Metrics
SHIB’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SHIB’s long/short ratio currently stands at 1.03, indicating bullish sentiment among traders. Additionally, its open interest has skyrocketed by 19% over the past 24 hours and 8.5% over the past four hours.
This rising open interest suggests growing trader interest in the meme coin, leading to a continuous increase in open positions as SHIB is poised for a breakout.
Current Price Momentum
At press time, SHIB is trading near the $0.000020 level and has experienced a price surge of over 7% in the past 24 hours. During the same period, its trading volume has increased by 30%, indicating heightened participation as the price approaches the breakout level.