Shiba Inu (SHIB), the second most dominant memecoin, continues to captivate the crypto market with its $7.8 billion market capitalization, standing at a solid half of Dogecoin’s market cap. Despite a recent 3.13% dip over the past 24 hours, SHIB’s current price action hints at intriguing opportunities for the final quarter of 2024.
Price Patterns And Potential Breakouts
SHIB’s recent trading activity mirrors patterns from earlier this year when it experienced a staggering 300% surge. The memecoin is currently trading at levels reminiscent of its January breakout, sparking hopes of a repeat rally. The key to unlocking SHIB’s future performance lies in its correction phase, which has formed a symmetrical triangle pattern on the daily chart.
After breaking downward from this triangle, SHIB initially hit a low of $0.00001264, which seemed like a bottom. However, the August 5th market crash pushed it to a new low of $0.00001081. This crash was swiftly corrected, and SHIB has since consolidated within the tightening triangle pattern. Historically, such contractions signal an impending breakout, with the market oscillating between contraction and expansion phases.
Trader Sentiment and Liquidations
A closer look at SHIB’s total liquidations chart reveals a notable trend: an increase in long traders compared to shorts, despite a general market decline since April. The current futures market assessment for SHIB remains bullish, with net long positions at 38% versus net shorts at 32%, creating a favorable delta of 36%.
This data aligns with previous patterns where SHIB experienced price surges, suggesting that the memecoin could be on the brink of another upward movement. Additionally, open interest data supports this bullish sentiment. SHIB’s open interest just below its price level stands at $35.866 million, indicating strong trader investment if the price hits $0.000011. Another significant cluster of open interest at $0.000021, holding $43.933 million, suggests that more conservative traders are eyeing this level for a potential rise.
Whale Activity and Holding Distribution
In terms of holding distribution, SHIB whales—investors holding over $10 million in SHIB—have increased their holdings by 3.39% over the last 30 days. This accumulation reflects confidence in SHIB’s long-term potential despite recent price declines. Retail traders show a mixed reaction with slight increases, decreases, or stability in their holdings, balancing the overall distribution.
Conclusion
Despite recent dips, Shiba Inu (SHIB) appears to be gearing up for potential price movements, particularly as large holders continue to accumulate. Traders and investors should keep a close eye on the symmetrical triangle pattern and support levels, as these indicators could signal the next big move for SHIB. With bullish futures market data and increasing whale accumulation, SHIB’s future looks promising as it navigates through its current consolidation phase.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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