- Shiba Inu (SHIB) price has broken a two-month consolidation, indicating potential for a 25% rally, as key technical indicators and whale accumulation support a bullish outlook.
- However, a daily candlestick close below $0.0000210 would invalidate this bullish thesis and signal a possible downturn.
Shiba Inu (SHIB) price has recently broken free from a two-month consolidation phase, signaling a potential bullish move. With the SHIB token currently maneuvering above a key resistance level, investors are eyeing a possible 25% rally. This upward momentum could push SHIB towards the $0.0000315 resistance level, presenting a lucrative opportunity for those looking to capitalize on the meme coin’s upward trajectory.
Breaking the Decline: A Turning Point for SHIB
Since reaching a local high of $0.0000457 on March 5, SHIB has experienced a series of lower lows and lower highs, outlining a declining trend. However, this trend was disrupted on May 20 when SHIB’s price closed above a significant declining trend line and the horizontal support level of $0.0000253. This closure has been interpreted as an increase in buying pressure, hinting at a bullish reversal.
The Relative Strength Index (RSI) has also flipped its 50 mean level into a support floor, underscoring the uptick in bullish momentum. Similarly, the Awesome Oscillator (AO) has recovered above the zero mean level, further supporting the case for an impending breakout rally.
Whales on the Move: Accumulation Phase Confirmed
The consolidation period over the past two months has provided a prime accumulation zone, particularly for larger investors. Santiment’s Whale Transaction Count indicator, which tracks transactions of $100,000 or more, has shown consistent spikes between April 12 and May 21. These spikes indicate that institutional investors have been accumulating SHIB during the dips, adding credence to the bullish outlook.
Moreover, IntoTheBlock’s signals support this optimistic view, with metrics such as net network growth and larger transactions forecasting a positive trend for SHIB. As the Ethereum spot ETF approval deadline approaches, the uptrend for SHIB is likely to gain momentum.
Technical Levels to Watch
Looking ahead, investors can expect SHIB to establish a base above the $0.0000253 level and potentially rally towards the $0.0000315 resistance level, marking a 25% upswing. In a more bullish scenario, SHIB might retest the $0.0000355 level, which represents the midpoint of the $0.0000253 to $0.0000457 range.
However, it’s crucial to remain cautious. A daily candlestick close below $0.0000210 would invalidate the bullish thesis, signaling a potential downturn. Investors should stay vigilant for any sudden shifts in market sentiment that could impact SHIB’s price trajectory.
A Bullish Outlook with Caution
The current indicators and on-chain metrics suggest a promising future for Shiba Inu, with a potential 25% rally on the horizon. The recent accumulation by whales and positive technical signals reinforce the bullish narrative. Nonetheless, investors should be prepared for market fluctuations and set their strategies accordingly to navigate the volatile crypto landscape.
