- Shiba Inu prices began consolidating in a bullish pattern on July 15.
- SHIB’s NVT ratio increased, but the rest of the market indicators pointed to a successful breakout.
Shiba Inu (SHIB) The bears have dominated the market for the past 7 days, and memecoin’s weekly chart has been red. However, the trend has changed in the past 24 hours.
In fact, the better news is that a bullish pattern has emerged on the memecoin chart. A successful breakout could result in a massive bullish rally.
Bull Pattern on Shiba Inu Chart
According to CoinMarketCap dataSHIB’s price fell by more than 2% last week. The situation reversed itself over the past day as bulls came in and pushed the memecoin’s price up by 2.4%.
At the time of writing, Shiba Inu was trading at $0.00001721 and had a market cap of over $10.14 billion, making it the 13th largest cryptocurrency. Meanwhile, a bullish falling wedge pattern has emerged on SHIB’s 12-hour chart.
Source: TradingView
This pattern appeared on July 15th and SHIB has been consolidating within it since then. At the time of writing, it is on the verge of a breakout.
Therefore, AMBCrypto planned to take a closer look at the state of SHIB and determine if a successful breakout is likely to occur, which could lead to a bullish rally.
Are SHIB’s indicators bullish?
AMBCrypto’s analysis of Glassnode data has revealed a bearish indicator: the NVT ratio for memecoin has been increasing over the past few days. Typically, a rising indicator indicates that the asset is overvalued and is likely to see a price correction.
Source: Glassnode
According to Santiment data, whales have not made any significant moves in the past week, as evident by the steady supply in the top address graph.
Nonetheless, buying pressure picked up slightly last week, with increased outflows of Mimecoin from exchanges and a decline in supply on exchanges suggesting investors are buying Shiba Inu.
Source: Santiment
We then checked the daily chart of Mimecoin to see what the market indicators were suggesting regarding a breakout from the bullish falling wedge pattern.
We found that the Relative Strength Index (RSI) has been trending upward. Chaikin Money Flow (CMF) has also moved north, and both are being minted by the ongoing price rally.
read Shiba Inu (SHIB) Price Forecast 2024-25
If that happens, 10 investors can see SHIB hitting $0.00001933 next week. A jump above that mark could see SHIB go up to $0.0000259.
However, if the downtrend reverses, SHIB is likely to fall to $0.000019 in the coming days.
Source: TradingView