Shiba Inu (SHIB) is showing signs of a possible breakout amidst renewed interest in meme coins. Technical indicators and whale activity suggest possible shifts in price dynamics.
Technical Analysis of Shiba Inu
Analysis of the SHIB/USD 4-hour chart indicates a breakout above a long-term descending resistance. This movement places Shiba Inu near the 23.60% Fibonacci retracement level at $0.00001619. A notable development is the formation of an inverted head and shoulders pattern, a bullish structure that often signals a reversal. The neckline of this pattern sits around $0.00001680, just above the Fibonacci level. Surpassing this resistance could confirm a stronger uptrend. Momentum indicators also support potential gains: DMI shows a positive crossover, and ADX is rising. The Bollinger Bands suggest pressure for a breakout.
Trends in Whale Holdings
On-chain data reveals shifting trends in the activity of major investors. Addresses holding from 100 billion to 1 trillion SHIB reduced their holdings by 1.92%, and those from 1 trillion to 10 trillion SHIB saw a 0.90% decrease. However, large investors with between 10 trillion and 100 trillion SHIB increased their holdings by 3.79%, indicating continued accumulation among major market players.
Risks and Potential Support Levels
Despite signs of potential growth, downside risks remain. Key support areas include the lower Bollinger Band at $0.00001524 and the major support level at $0.00001368. A decline below these levels could invalidate the bullish scenario and lead to a retest of lower price zones. Analysts believe that if Shiba Inu breaks through current resistance, the price could rise to $0.000020, representing a 25% potential upside.
Shiba Inu is showing signs of sustained recovery, supported by technical indicators and whale activity. However, overcoming critical resistance levels is crucial for further gains. Current momentum and price action in the coming days will be decisive in determining the asset's movement direction.
