Shiba Inu (SHIB) is capturing the spotlight once again, boasting a remarkable 20% rise in profitability that signals a potential recovery for the popular meme coin. Recent data reveals that 55% of SHIB holders are now in the green, a significant uptick that could entice new investors eager to capitalize on this newfound growth potential. With 73% of SHIB held by large investors, commonly known as whales, the cryptocurrency’s resilience appears promising, despite some bearish sentiments surfacing among these large holders.
Rising Profitability And Market Sentiment
The latest surge in profitability is not just a statistic; it reflects a shifting market sentiment that could bode well for SHIB’s future. As more holders find themselves profitable, the likelihood of increased buying activity rises, further propelling the asset’s price. Notably, 79% of SHIB holders have held their investments for over a year, providing a stable foundation for a long-term recovery. This loyalty among holders could incentivize them to buy more SHIB, driving prices upward.
From a technical standpoint, SHIB is currently trading above the 50-, 100-, and 200-day exponential moving averages (EMAs), a bullish indicator that points to a strengthening trend. Additionally, SHIB’s chart reveals a developing symmetrical triangle pattern that could result in a significant breakout, potentially triggering a more robust price rally. If this upward momentum continues, a golden cross, a long-term bullish signal, could further validate the potential for an extended upward trend.
The Broader Crypto Landscape – Ethereum and Solana
While Shiba Inu shows signs of recovery, the broader cryptocurrency market faces challenges. Ethereum (ETH) is at a critical juncture, forming a Head and Shoulders pattern that may foreshadow an impending bearish reversal. Ethereum has struggled to overcome key resistance levels, and failing to break above the 100 EMA at $2,650 could lead to a test of lower support levels around $2,400.
Also Read: Shiba Inu (SHIB) Soars – 2.95 Trillion Tokens Bought In October, Fueling 7.29% Monthly Gain!
In contrast, Solana (SOL) is battling to maintain momentum as it approaches the $160 resistance level. If SOL cannot break through this critical barrier, it may face a price reversal, potentially retreating to support levels around $147. However, if buying volume increases and SOL manages to sustain a breakout above $160, the cryptocurrency could target the $180-$200 range.
A Potential Bull Run for SHIB?
As Shiba Inu continues to show signs of a bullish trend, the market is watching closely. The 20% increase in profitability, coupled with a significant percentage of long-term holders, positions SHIB for a potential breakout. Although the overall crypto landscape presents challenges, particularly for Ethereum and Solana, Shiba Inu’s recent performance is encouraging. Investors should keep a close eye on SHIB as it navigates this crucial phase; the current sentiment could herald the beginning of a new bullish chapter for the beloved meme coin.
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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