Shiba Inu (SHIB), the popular and second largest crypto meme coin, is poised for a price surge as it has formed a bullish price action pattern within a four-hour time frame. Furthermore, overall market sentiment appears to be shifting from a downtrend to an uptrend, with SHIB appearing to break its long-standing consolidation or channel pattern.
Shiba Inu (SHIB) Technical Analysis and Upcoming Levels
According to expert technical analysis, SHIB appears to be bullish as it is currently at the bottom of the channel pattern, i.e. the lower boundary of the consolidation zone, where it has been for the past 32 days.
The daily SHIB chart shows that the meme coin is moving within a range between $0.00002013 and $0.00002466, and is currently at the lower limit of this zone.
Looking at the four-hour chart of SHIB, it appears that this is the fifth time the meme coin has moved lower. Based on the recent price action and historical price momentum, there is a good chance that the price will rise 18% in the coming days to reach the $0.00002466 level.
On the upside, SHIB’s Relative Strength Index (RSI) at 44.37 signals a bullish signal and indicates a potential price reversal and upside momentum.
$32 million in SHIB grant outflows
However, looking at the bullish price action and potential upside momentum, long-term holders appear to be accumulating the token, as revealed by the on-chain analytics firm MintGlass. Spot inflows and outflows data show that the stock markets have witnessed outflows from SHIB worth over $32 million in the last 48 hours.
These substantial outflows indicate potential accumulation, as outflows refer to the movement of assets from exchanges to investors’ pockets. It also suggests a potential buying opportunity, upside potential and upcoming buying pressure.
When this on-chain metric is combined with the technical analysis, it appears that bulls have come to dominate, pushing the meme coin to the upper limit of the consolidation zone.
Current price momentum
Currently trading around $0.000021, SHIB has experienced a price drop of over 1.85% in the last 24 hours. During the same period, trading volume fell by 58%, indicating lower participation from traders and investors compared to the day before.
Credit : coinpedia.org
