- Shiba Inu signalled potential pattern break with the possibility of a rally after months of sell pressure
- On-chain data indicated that whales have been adding to their balances
Shiba Inu could be on the verge of a strong bullish breakout this week.
Shiba Inu, one of the market’s most popular memecoins, was one of the top trending cryptocurrencies on X, at the time of writing. This is a vital observation, one which could feed into the breakout expectations.
Why? Well, because SHIB has been trading within a long-term wedge pattern on the charts, underpinned by YTD lows and highs.
Source: TradingView
Shiba Inu’s sustained sell pressure has so far pushed it towards the edge of the wedge pattern. This means that it may now be ready to break out of this pattern. Although it could still tread lower, the heavy discount suggested that it is more likely to favor the bulls, especially if there is strong accumulation.
The fact that Shiba Inu’s social sentiments were on the rise over the last 24 hours was a sign that it has been receiving more attention. This means more traders are likely to observe the potential breakout opportunity.
SHIB traded at $0.0000134, at press time. Its next major target seemed to be around the $0.0000161-level, which represented a 20% uptick from its press time price. The next resistance zone would require a 45% upside.
Is Shiba Inu building momentum?
Our market sentiment pitted longs versus shorts for interesting, but modest findings. According to Hyblock Capital, the number of net longs surpassed net shorts in the last 24 hours. However, there were less than 300,000 net shorts.
Source: HyblockCapital
The findings confirmed that demand in the derivatives segment has been swaying in favor of the bulls. However, this may not necessarily be a strong indicator that price will follow the expected outcome. Shiba Inu’s ownership stats can be used to paint a much clearer picture here.
The large holder inflows metric on IntoTheBlock revealed up to 2.09 trillion SHIB in inflows in the last 24 hours. On the contrary, large holder outflows were more modest at 527.8 billion. About 4 times lower than the amount of SHIB flowing into whale addresses.
Source: IntoTheBlock
The aforementioned findings revealed that there was significantly higher accumulation by whales, compared to the amount of sell pressure. Simply put, whales are in tune with the bullish expectations and the possibility of a breakout on the charts.
