- SHIB could rally 100% to the $0.0000324 level or even higher if it closes a weekly candle above the $0.0000155 level.
- SHIB’s open interest has increased by 11% in the last 24 hours, indicating greater interest from investors.
Since the beginning of August 2024, the entire cryptocurrency market has been in a downturn, which is mainly due to continuous 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 the weekly time frame, indicating a potentially significant upside rally in the coming days.
SHIB’s bullish price movement
Based on the price action and technical analysis, SHIB has formed a bullish falling wedge price action pattern on a weekly basis. This pattern is also on the verge of a breakout that could happen soon.
If SHIB breaks out of this bullish price action pattern, there is a high chance that it will rally 100% to the $0.0000324 mark or even higher.
However, the breakout alone is not the only factor that makes SHIB bullish; a weekly candle close above the $0.0000155 mark is also crucial.
Source: TradingView
In addition to the falling wedge pattern, SHIB was at a crucial support level at $0.000012 at press time. The last time SHIB broke this level was in February 2024 – no retest.
However, the continued price decline has now led to a retest that could support SHIB in the upcoming rally.
Additionally, crypto analyst Javon Marks published a post on X (formerly Twitter) stating that SHIB is bullish and close to a breakout level. He also noted that this bullish outlook is confirmed by the bullish divergence.
The expert predicted that SHIB could rise to the $0.000081 mark if it manages to break out of the falling wedge pattern.
Increase in open interest
At press time, SHIB is trading near the $0.0000133 mark after its price increased by over 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 has increased by 11% over the past 24 hours, according to on-chain analytics firm Coinglass.
Whale concentration
At press time, 60.19% of the SHIB circulating supply was in the hands of seven whales, while 43 sharks held 12.84% of the supply.
Is your portfolio green? Check out the SHIB profit calculator
Meanwhile, according to on-chain analytics firm IntoTheBlock, only 26.96% of SHIB’s supply was in the hands of retail investors.
Source: IntoTheBlock
The highest concentration of SHIB was in the hands of whales and sharks. This is worrying as they can easily manipulate prices.
