Shiba Inu Price Eyes 38% Rally Amid Bullish Reversal Pattern
SHIB, the second-largest meme cryptocurrency by market cap, experienced a 14% surge over the past five days, rising from $0.000013 to $0.00001478. This bullish rally was likely driven by the broader market recovery following the U.S. Federal Reserve’s 0.5% rate cut. The Shiba Inu price shows signs of a potential extended recovery, supported by this double-bottom reversal pattern.
Shiba Inu Price Targets 38% Surge as Bullish Reversal Takes Shape
The cryptocurrency market took a bullish turnaround in September following the Bitcoin price reversal from $52,500 to $63,456— a 20% increase. The renewal recovery sentiment shifted the prevailing correction in Shiba Inu price into a sideways trend above $0.0000123.
In the last 11 weeks, the SHIB price showcased three failed attempts to breach the bottom support line, indicating the active accumulation zone for buyers. The latest reversal uplifted the altcoin 19.82% to trade at $0.0000147 while the market cap surged to $8.7 billion.
An analysis of the daily chart shows the formation of a double-bottom reversing pattern, a chart setup often spotted at major market bottoms.
If the pattern holds true, the dog-themed memecoin is poised for a 9.3% surge before the critical breakout from the $0.000016 neckline. The potential breakout will intensify the bullish momentum and drive another 25% surge to target $0.00002.
SHIB/USDT -1d Chart
According to the Santiment data, the supply of SHIB on exchanges steadily declined to reach 75.3 Trillion coins. This downward trend suggests a withdrawal of tokens from exchanges, which can indicate investors’ accumulation or a decrease in selling pressure.
SHIB Supply on exchange | Santiment
On the contrary, the 30-day MVRV (market value-to-realized value) ratio has spiked to 7.66%, indicating that short-term buyers are in profit. Historically, the MVRV ratio value of 8-10% has coincided with Shiba Inu price prediction tops as these speculative traders often exit the market early for profit booking.
SHIB | MVRV Ratio
Therefore, if the overhead supply persists, the Shiba Inu price could revert to $0.000012 and prolong the consolidation trend.
For a detailed analysis, check out the top meme coins article.
The post Shiba Inu Price Eyes 38% Rally Amid Bullish Reversal Pattern appeared first on CoinGape.
Filed under: News - @ September 21, 2024 8:26 pm