- Shiba Inu (SHIB) price surges after breaking a two-month consolidation, hinting at a potential 25% upswing.
- Technical indicators and on-chain metrics paint a bullish picture, with accumulation by whales fueling optimism.
Shiba Inu, the popular dog-themed meme coin, has broken free from a two-month slumber and is flashing bullish signals. This uptick coincides with a broader crypto market recovery, presenting an attractive entry point for investors before a potential price surge.
SHIB Price Poised for a Breakout
Following a local high of $0.0000457 in March, Shiba Inu SHIB entered a consolidation phase marked by lower highs and lows. However, a key trendline connecting these lows was decisively breached on May 20th. This daily candlestick close above both the trendline and the horizontal support level of $0.0000253 signifies a significant rise in buying pressure.
Analysts anticipate SHIB to establish a solid foundation above $0.0000253, potentially triggering a 25% rally toward the $0.0000315 resistance zone. In an even more bullish scenario, the meme coin could retest $0.0000355, the midpoint of its recent trading range.
Technicals Align with Bullish Momentum
Supporting the bullish outlook are technical indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO). Both have flipped their respective 50 and zero mean lines, respectively, indicating a surge in bullish momentum.
Whale Activity Signals Accumulation
The past two months of consolidation served as a prime accumulation zone for whales, as evidenced by the Sentiments Whale Transaction Count indicator. This metric tracks transactions exceeding $100,000 and serves as a proxy for institutional investor activity. Consistent spikes in this metric during the consolidation period suggest significant accumulation by whales, adding weight to the technical analysis.
Into The Block Paints a Bullish Picture
Further bolstering the bullish thesis are IntoTheBlock’s signals, which paint a generally optimistic picture for SHIB. Metrics like net network growth and larger transaction volumes all point towards a positive future for the meme coin.
A Word of Caution
While the overall sentiment for SHIB is bullish, investors should remain cautious of a sudden downturn in the broader crypto market. A sharp decline in market sentiment could push SHIB below the crucial $0.0000210 support level, invalidating the bullish thesis and potentially leading to a 20% drop toward the next support zone at $0.0000168.