Shiba Inu [SHIB] still holds its position as the second most prominent memecoin, boasting a market capitalization of over $7.8 billion, which is approximately half of Dogecoin’s market cap.
At the time of writing, SHIB had experienced a 3.13% decline over the past 24 hours. Despite this, the current price movement indicates promising opportunities for the final quarter of the year.
Trading at levels that previously triggered a 300% surge earlier in the year, there is optimism for a potential rally in the near future.
While it remains uncertain if SHIB can replicate its success from earlier in the year, the patterns observed during its correction phase offer valuable insights for the months ahead.
Following a consolidation phase, a symmetrical triangle pattern emerged on the daily chart, culminating in a downward break that saw the price dip to $0.00001264, a level believed to be the bottom.
Subsequently, the market crash on August 5th led to a new low of $0.00001081, which was swiftly rectified as SHIB/USDT continued to consolidate within the narrowing triangle pattern.
The ongoing contraction hints at an imminent breakout, a common occurrence as the market oscillates between contraction and expansion phases.
Traders are anticipating SHIB to hold firm at the base of the triangle. A breach below and sustaining at that level could indicate a shift in market sentiment, although this scenario is deemed less probable.
Despite the unpredictability of short-term market movements, traders are advised to exercise caution, as trends tend to become more predictable over longer time frames.
Analysis of Total Liquidations Heatmap
An examination of Shiba Inu’s total liquidations chart reveals an increasing number of long positions compared to short positions, despite the general downturn in the crypto market since April.
The assessment of SHIB’s futures market appears bullish, with net long positions comprising 38% against net shorts at 32%, resulting in a net longs/shorts delta of 36%.
Although these percentages are relatively modest, they align with historical levels that preceded price surges for SHIB.
Insights from Shiba Inu’s Open Interest
Furthermore, data on open interest highlights the potential for upward movement in the near term.
Currently, SHIB’s open interest just below its current price level is at $35.866 million, indicating a willingness among traders to make significant investments if the price reaches $0.000011.
This could trigger a swift reversal due to the buying pressure at this level. Another substantial concentration of open interest lies at $0.000021, with $43.933 million, indicating that more conservative traders have their sights set on this level for a potential price upsurge.
Analysis of Holding Distribution
Regarding the distribution of holdings, large SHIB holders—defined as those holding over $10 million worth of SHIB—have increased their holdings by 3.39% in the last 30 days, showcasing accumulation despite recent price corrections.
On the other hand, retail traders have displayed varying trends of marginal increases, decreases, or no changes, contributing to a balanced overall distribution.
Although the current price dip persists, data analysis suggests that SHIB is preparing for potential upward price movements as accumulation persists, particularly among significant holders.