- The price of Shiba Inu started consolidating in a bullish pattern since July 15.
- SHIB’s NVT ratio rose, but other market indicators pointed to a successful breakout.
Shiba Inu [SHIB] Bears have dominated the market for the past seven days, while the memecoin’s weekly chart has been red. However, the trend has changed in the past 24 hours.
In fact, the better news was that a bullish pattern appeared on the memecoin’s chart. A successful breakout could result in a massive bull rally.
A bull pattern on the Shiba Inu chart
According to CoinMarketCap facts, the price of SHIB fell by more than 2% last week. Things took a turn for the worse on the last day when the bulls stepped in and pushed the memecoin’s price up 2.4%.
At the time of writing, Shiba Inu was trading at $0.00001721, with a market cap of over $10.14 billion, making it the 13th largest crypto. In the meantime, a bullish falling wedge pattern appeared on SHIB’s 12-hour chart.
Source: TradingView
The pattern emerged on July 15 and SHIB has consolidated since then. At the time of writing it was on the verge of an outbreak.
Therefore, AMBCrypto planned to take a closer look at the state of SHIB to see the chances of a successful breakout, which could result in a bull rally.
Are SHIB’s stats bullish?
AMBCrypto’s analysis of Glassnode’s data revealed a bearish measure. The memecoin’s NVT ratio has increased in recent days. Typically, a rise in the benchmark means an asset is overvalued, indicating a price correction.
Source: Glassnode
According to Santiment’s data, the whales also didn’t make any major moves last week, which was evident from the flat supply in the top addresses chart.
Nevertheless, buying pressure increased slightly last week. Outflows of the memecoin increased and supply on the exchanges fell, indicating that investors were buying Shiba Inu.
Source: Santiment
We then checked the memecoin’s daily chart to find out what the market indicators were signaling regarding a breakout from the bullish falling wedge pattern.
We found that the Relative Strength Index (RSI) registered an increase. The Chaikin Money Flow (CMF) also moved north, both of which caused continued price appreciation.
Read Shiba Inus [SHIB] Price prediction 2024-25
If that happens, ten investors could see SHIB reach $0.00001933 next week. A jump above that could push SHIB to $0.0000259.
However, in the event of a bearish trend reversal, SHIB could drop to $0.000019 in the coming days.
Source: TradingView