An analysis conducted recently appeared to signal the breakout of a confirmed descending wedge pattern for Shiba Inu [SHIB]. This particular pattern, often viewed as a bullish reversal signal, typically indicates the potential for a long-term recovery in the respective token.
Setting a price target of $0.000081, well-known crypto analyst Javon Mark forecasted a substantial 480% upside. Yet, the crucial question that arises is whether the breakout alone possesses the capacity to trigger a notable price surge.
Are Shiba Inu’s technical signals shaping up for a breakout?
As of the current moment, SHIB was trading at $0.00001393, marking a 3.50% increase over the past 24 hours. Its RSI (Relative Strength Index) was observed at 57.54, indicating the presence of potential upward momentum before reaching overbought levels.
The RSI had not crossed the significant 70 mark, suggesting that the rally could persist without an immediate retraction.
Moreover, the Bollinger Bands displayed a price range spanning from $0.00001389 to $0.00001407, demonstrating a narrowing price movement. This tightening, combined with the breakout of the falling wedge pattern, supports a potential bullish movement – Confirming the possibility of an upcoming breakout.
Is on-chain activity reinforcing the optimistic outlook?
Shiba Inu’s on-chain metrics indicated a surge in investor engagement. In the last 24 hours alone, the transfer volume skyrocketed by a staggering 2,154.62%, reaching 2.49 trillion SHIB currently. This remarkable surge signified heightened interest and involvement from the Shiba Inu community.
Regarding wallet activity, there was a 5.68% increase in 6,178 active addresses – signaling a rise in wallet transactions involving SHIB. Similarly, the number of transactions surged by 21.05%, totaling 7,315. These on-chain activities could be interpreted as a growing investor trust in the token, potentially validating the bullish scenario.
Should investors exercise caution regarding exchange netflows?
Despite the indicators pointing towards strong momentum, one warning sign was the exchange netflows.
Over the past 7 days, more than 1.88 billion SHIB was deposited into exchanges – a staggering 15,321.61% surge in the last 24 hours. This trend might suggest that certain investors are preparing to sell, possibly introducing selling pressure into the market.
Exchange inflows commonly hint at short-term volatility. Hence, traders should be mindful of this aspect when making decisions, especially within a highly speculative environment like that of SHIB’s.
What lies ahead for Shiba Inu?
With a market capitalization of $8.21 billion and a daily trading volume of $166.87 million presently, Shiba Inu appears to be on the verge of a potential breakout.
However, while the technical groundwork appears promising, the recent surge in exchange deposits warrants cautious optimism.