Shiba Inu (SHIB) Flashes Buy Signal, Key Insights for Traders

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Shiba Inu (SHIB), the popular and second-largest meme coin, is now poised for a significant upside rally after consolidating for more than six weeks. It has been observed that while top crypto assets experience notable upside rallies, SHIB remains in a consolidation phase and appears to be struggling.

Why is the SHIB Price Increasing?

Recently, the on-chain analytics firm IntoTheBlock revealed that the large transaction volume of the SHIB meme coin has surged by over 150% in the past 24 hours.

This significant increase in large transactions indicates strong participation from whales, as SHIB has formed a bullish price action pattern. Moreover, this notable transaction volume suggests a potential upside rally.

Shiba Inu (SHIB) Technical Analysis and Upcoming Levels 

In addition to the current bullish on-chain metrics, expert technical analysis suggests that SHIB has formed a bullish inverted head-and-shoulders price pattern on the weekly and daily time frames. Meanwhile, the ongoing price consolidation indicates significant acquisitions or accumulation of SHIB by whales and large investors.

Source: Trading View

Based on recent price action and historical momentum, if SHIB breaks through the neckline of the bullish pattern at the $0.000020 level and closes a daily candle above it, there is a strong possibility that the meme coin could surge by 34%, reaching the $0.000028 level in the coming days.

Currently, SHIB is trading above the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. Additionally, the 50-day and 200-day EMAs have formed a golden crossover, which is a bullish signal for the asset.

Bullish On-Chain Metrics 

SHIB’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SHIB’s long/short ratio currently stands at 1.03, indicating bullish sentiment among traders. Additionally, its open interest has skyrocketed by 19% over the past 24 hours and 8.5% over the past four hours.

Source: Coinglass

This rising open interest suggests growing trader interest in the meme coin, leading to a continuous increase in open positions as SHIB is poised for a breakout.

Current Price Momentum 

At press time, SHIB is trading near the $0.000020 level and has experienced a price surge of over 7% in the past 24 hours. During the same period, its trading volume has increased by 30%, indicating heightened participation as the price approaches the breakout level.