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

04/12/2024 05:00

Shiba Inu's price is confined within a symmetrical triangle, poised for a potential breakout that could trigger a rally in the meme coin.

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. Source: Into TheBlock

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. Source: Into TheBlock

Consequently, as investors refrain from selling and choose to hold, Shiba Inu’s price will be bullish.

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. Source: TradingView

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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