Recent analysis has pointed out a confirmed breakout from a falling wedge pattern for Shiba Inu [SHIB]. This pattern, typically viewed as a positive reversal signal, potentially indicates a long-term recovery for the token.
Setting a price target of $0.000081, well-known cryptocurrency analyst Javon Mark has forecasted a substantial 480% upward potential. However, the crucial question to ponder is whether the breakout alone is adequate to trigger a significant price rally.
Do Shiba Inu’s Technical Indicators Signal a Potential Breakout?
At the current moment, SHIB is trading at $0.00001393, showing a 3.50% increase in the last 24 hours. The Relative Strength Index (RSI) sits at 57.54, suggesting there is still room for further upward momentum before reaching overbought levels.
The RSI has not yet surpassed the critical 70 level, indicating a possible continuation of the rally without an immediate pullback.
In addition, the Bollinger Bands illustrate a price range from $0.00001389 to $0.00001407, displaying a narrowing price movement. This tightening price action, combined with the breakout from the falling wedge pattern, supports a potential bullish movement – confirming the likelihood of a breakout.
Is On-Chain Activity in Support of the Bullish Trend?
On-chain metrics for Shiba Inu indicate increased participation from investors. In the past 24 hours alone, the transfer volume surged by a staggering 2,154.62%, reaching 2.49 trillion SHIB presently. This significant uptick signifies heightened interest and engagement from the Shiba Inu community.
Regarding wallet activity, there has been a 5.68% increase in active addresses, totaling 6,178 – indicating a growing number of wallets engaging with SHIB. Additionally, the number of transactions rose by 21.05%, reaching a total of 7,315. These on-chain behaviors can be interpreted as a growing investor confidence in the token, potentially validating the bullish outlook.
Should Investors Exercise Caution with Exchange Netflows?
Despite the positive metrics, one concerning signal revolves around exchange netflows.
Over the past week, more than 1.88 billion SHIB was deposited into exchanges – marking a significant 15,321.61% surge in the last 24 hours. This could indicate that some investors are gearing up to sell, introducing potential selling pressure into the market.
Exchange inflows typically imply short-term volatility. Hence, traders need to be mindful of this factor, especially in a speculative market like SHIB.
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 primed for a breakout.
However, while the technical setup appears promising, the recent uptick in exchange deposits warrants cautious optimism.