- SHIB could rise 100% to the $0.0000324 level or even higher if it closes a weekly candle above the $0.0000155 level.
- SHIB’s Open Interest is up 11% in the last 24 hours, indicating increased investor interest.
Since the beginning of August 2024, the overall cryptocurrency market has been in a downturn, mainly due to continued price declines in various cryptocurrencies.
Amid this decline, Shiba Inu [SHIB]The world’s second-largest memecoin, has formed a bullish price action pattern on a weekly basis, pointing to a potentially significant upside rally in the coming days.
SHIB’s Bullish Price Action
Based on price action and technical analysis, SHIB has formed a bullish descending wedge price action pattern on a weekly time frame. This pattern is also on the verge of a breakout, which could occur soon.
If SHIB breaks this bullish price action pattern, there is a good chance that it could rise 100% to the $0.0000324 level or even higher.
However, the breakout alone isn’t the only factor making SHIB bullish; a weekly candle close above the $0.0000155 level is also crucial.
Source: TradingView
In addition to the falling wedge pattern, SHIB was at a crucial support level near $0.000012 at the time of writing. The last time SHIB broke this level was in February 2024 – no retest.
However, the continued price decline has now led to a retest, which could support SHIB in the upcoming rally.
Also crypto analyst Javon Marks posted a message on X (formerly Twitter) stating that SHIB was bullish and close to a breakout level. He also noted that this bullish outlook is confirmed by bullish divergence.
The expert predicted that if SHIB breaks the falling wedge pattern, it could rise to the $0.000081 level.
Emergence of open interest
At the time of writing, SHIB is trading around the $0.0000133 level, following a price increase of more than 1% in the last 24 hours.
Trading volume has fallen by 35% over the same period, indicating lower participation from traders and investors.
Despite this, SHIB’s Open Interest was up 11% in the past 24 hours, the on-chain analytics firm said Mint glass.
Whale concentration
At the time of writing, 60.19% of SHIB’s circulating supply was held by seven whales, while 43 sharks held 12.84% of the supply.
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Meanwhile, only 26.96% of SHIB’s supply was held by retail investors, according to analytics firm IntoTheBlock.
Source: IntoTheBlock
The highest concentration of SHIB has been in the hands of whales and sharks. This is worrying because they can easily manipulate prices.