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Is a Shiba Inu (SHIB) Rally on the Horizon? Selling Pressure Eases


Shiba Inu (SHIB) price is looking to break out of a bullish pattern, potentially sending it to a multi-month high.

The investors, too, seem to support the probability, but only one barrier remains.

Shiba Inu Investors Hold off Selling

Shiba Inu’s price tends to go down primarily during bouts of selling, but during moments of hodling, the price goes up. This is the case with SHIB, as investors show rather intense signs of holding on to their assets.

This is evident from the participation of the investors on the chain. Active addresses divided by profitability show that less than 18% of the investors conduct transactions on the network. This indicates that SHIB holders are not opting to sell right now but instead gain unrealized profits.

Shiba Inu Active Addresses by Profitability.
Shiba Inu Active Addresses by Profitability. Source: IntoTheBlock

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This conviction of potential gains is further exhibited by the supply shift from short-term to mid-term traders. Since the former only holds assets for a month, SHIB moving to the latter signifies interest in HODLing for more than a month to a year. In the past ten days, about 4% of the entire circulating supply of SHIB has moved to mid-term holders.

Shiba Inu Supply Distribution.
Shiba Inu Supply Distribution. Source: IntoTheBlock

SHIB Price Prediction: Rally Awaits?

Shiba Inu’s price attempts to break down a symmetrical triangle pattern. This is a technical analysis formation characterized by converging trendlines, indicating a period of consolidation before a potential breakout.

Given that candlesticks are close to breaching the breakout point, the meme coin has the potential of a rally. Based on the pattern, the target is $0.00004148, marking a 45% rise. However, realistically, Shiba Inu’s price rise will likely halt at $0.00003599, which marks a crucial resistance.

SHIB/USDT 8-hour chart.
SHIB/USDT 8-hour chart. Source: TradingView

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But if the cryptocurrency falls through the lower trend line before rallying or fails to breach the $0.00003000 barrier, it would invalidate the bullish thesis, falling to the $0.00002268 support level.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.


Conclusion

In conclusion, the Shiba Inu (SHIB) price is poised to break out of a bullish pattern, indicating the potential for a significant increase to a multi-month high. The investors are showing strong support for this possibility, with a key barrier remaining before the breakout can occur. The data suggests that SHIB holders are currently holding onto their assets, with a significant portion not conducting transactions on the network. Additionally, there has been a shift in the supply from short-term to mid-term traders, indicating a growing interest in holding SHIB for longer periods. Despite some resistance levels, the technical analysis suggests a potential rally in the price of SHIB in the near future.

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  • xrpXRP (XRP) $ 0.484534
  • cardanoCardano (ADA) $ 0.411882
  • shiba-inuShiba Inu (SHIB) $ 0.000021
  • polkadotPolkadot (DOT) $ 6.23