Shiba Inu [SHIB], the second most popular meme cryptocurrency, has been in a consolidation phase near the $0.000014416 support level for some time. The coin has tested this threshold on three occasions without dropping below it.
Recent price movements of SHIB/USDT suggest a breakout from the 75-day trading range. Currently, the previously tightly compressed Bollinger Bands are beginning to widen.
This change could indicate the conclusion of the consolidation phase. Furthermore, the wave trend momentum oscillator has shown a golden cross, signaling increased buying interest and market momentum.
With the broader cryptocurrency market showing signs of strength, including Bitcoin and most other alternative coins, SHIB appears to offer a lucrative long opportunity.
If Shiba Inu breaks out of its consolidation pattern and confirms it with a retest, there could be potential returns of up to 110%, reaching the $0.00002949 price level next year. Previous CryptoCrypto analysis has even suggested a potential 300% gain.
Analysis of Orderbook Liquidity Delta
The difference in aggregate order book depth, indicating the liquidity in buy and sell orders, shows that currently there are more buy orders than sell orders.
Since April 25th, most days have seen stronger liquidity on the buy side, with only 15 days favoring sell orders.
This trend implies that traders have been amassing positions despite the sideways movement and downward trend. This accumulation of long positions adds more support to the notion that SHIB is on the verge of breaking out of the Bollinger Band squeeze.
While order book liquidity alone doesn’t determine prices, the high number of buy orders could serve as a catalyst to drive SHIB’s price higher.
SHIB Liquidation Heatmap
Typically, the market gravitates towards clusters with high liquidation potential, and the current price action of SHIB aims at the $0.0000146 level, where about $3.49 million worth of SHIB shorts will be liquidated.
Further price upticks could trigger additional liquidations, including around $2.91 million in the $0.0000147 zone.
Given the proximity of these clusters, even a brief price surge could trigger this liquidity pool. Once these levels are reached, SHIB could advance towards the $0.000015 mark, where approximately $3.13 million in SHIB is primed for liquidation.
These clusters often act as attractors, propelling SHIB’s price upwards once they are cleared, thereby targeting the liquidity just below the current price at $0.0000128, where $3.2 million worth of SHIB awaits liquidation.
Ownership Concentration
Historically, whales have held the majority of SHIB, possessing 59.97% of the total supply, equivalent to 589.99 trillion SHIB coins. Investors own about 26.74%, while retail traders possess 13.29%, totaling 130.78 trillion SHIB.
Whale holdings have risen by 0.12%, with large investors’ stakes increasing by 0.46%. On the other hand, retail ownership has decreased by 0.41%, which is not a significant concern.
The rising accumulation by whales and larger investors suggests that a breakout and subsequent surge in SHIB’s price may be on the horizon.