Is a Shiba Inu (SHIB) Rally on the Horizon? Selling Pressure Relaxes
Shiba Inu (SHIB) price is indicating potential for a breakout, which could lead to a significant increase in value over the coming months. Investors appear to be supportive of this possibility, with only one hurdle remaining.
A key factor in SHIB’s price movement is the behavior of its investors. Historically, when investors sell, the price tends to decline, but when they hold onto their assets, the price tends to rise. Currently, SHIB investors are displaying signs of strong holding sentiment, as seen through the low number of active addresses conducting transactions on the network. Less than 18% of investors are actively selling their SHIB, suggesting they are aiming to accumulate unrealized profits.
This conviction in potential gains is further reinforced by the shift in supply distribution from short-term to mid-term traders. A significant portion of SHIB’s circulating supply has recently been transferred from short-term to mid-term holders, indicating a growing interest in long-term HODLing. This trend supports a bullish outlook for SHIB’s price.
Technically, SHIB’s price is attempting to break out of a symmetrical triangle pattern, which often signals a consolidation phase before a potential breakout. With candlesticks nearing the breakout point, there is a strong possibility of a rally. The pattern suggests a target price of $0.00004148, representing a 45% increase. However, it is more realistic to anticipate a resistance level at $0.00003599.
It is worth noting that if SHIB fails to breach the breakout point and falls through the lower trend line, or if it fails to surpass the $0.00003000 barrier, the bullish thesis would be invalidated, potentially leading to a decline towards the support level at $0.00002268.
Overall, the current indicators suggest a potential rally for Shiba Inu (SHIB), with investors holding strong and a breakout pattern forming. However, market dynamics can change rapidly, so it is crucial to monitor the price movements closely.