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June 16, 2024
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Shiba Inu Struggles Around Key Breakout Channel Despite Bullish Metrics: Here’s What to Expect from SHIB Price

The post Shiba Inu Struggles Around Key Breakout Channel Despite Bullish Metrics: Here’s What to Expect from SHIB Price appeared first on Coinpedia Fintech News

Shiba Inu has shown mixed performance recently, but analysts remain bullish about the memecoin’s future due to fundamental developments. With Bitcoin’s price facing bearish pressure around $66K, SHIB struggles to achieve a clear breakout above a triangle pattern despite bullish on-chain metrics.

Shiba Inu Faces A Surge In Whale Interest

In the past 24 hours, Shiba Inu (SHIB) has experienced increased bearish pressure, leading to a significant rise in long-liquidations. Data from Coinglass shows that SHIB faced total liquidations of nearly $258,000, with buyers accounting for approximately $217,000 of this amount. Additionally, open interest for SHIB has increased by 1.4%, now standing at $77.25 million.

On-chain data reveals a significant increase in large transactions for SHIB over the past five days. The number of transactions skyrocketed from a low of 14 to 378. This sharp rise in whale activity has driven up volatility and resulted in a substantial increase in trading volume.

Additionally, data from IntoTheBlock shows that funds going into addresses owned by large holders, or whales, have jumped by 1,600% in the last 24 hours. Specifically, these inflows rose from 728.17 billion SHIB on May 15 to 3.97 trillion SHIB on May 16.

Also read: Shiba Inu Investor Bags $3.2M Profit After Holding 2.6 Years

Such a spike in large holder inflows can suggest two things. First, it might indicate significant buying activity, as many whales tend to buy on centralized exchanges and then move their purchases to cold storage.

Second, it can signal price bottoms, as whales often buy in bulk after major corrections. Both scenarios seem likely as Shiba Inu’s price faces key resistance levels.

The NVT (Network Value to Transaction) ratio has recently declined from the peak of 706 to a low of 58.8. A lower NVT ratio indicates that the transaction volume has increased despite the rise in network’s value.

This suggests that more users are actively transacting Shiba Inu, which can be a positive signal. High transaction volumes reflect increased interest and engagement in the memecoin, possibly leading to increased demand and, consequently, a rise in SHIB price.

What’s Next For SHIB Price?

On May 13, the bulls successfully defended the support line of Shiba Inu’s symmetrical triangle pattern. However, the rebound failed to break through the channel’s resistance line and is currently consolidating. As of writing, SHIB price trades at $0.000025, surging over 2% in the last 24 hours.

The 20-day EMA ($0.000024) is surging, and the RSI is hovering above the midpoint, indicating an advantage for the bulls. Given this bullish momentum, SHIB price might soon validate a clear breakout above the channel’s resistance line.

A breakout above the triangle would indicate the end of the corrective phase, potentially pushing the SHIB/USDT pair to $0.000030 and then to $0.000033. Conversely, a break below the triangle could lead to a decline to the 78.6% Fibonacci retracement level at $0.0000185.

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