Shiba Inu (SHIB) Price Spikes 14% as Accumulation Signals and Bullish Technical Setup Take Hold
- WBOYOriginal
- 2024-07-11 10:24:59478browse
Recent data from CryptoQuant and Santiment provide some insights into the cues driving SHIB's price action.
Shiba Inu price spiked more than 14% on Friday to reach a daily high close to $0.000017. The token has attracted immense interest in recent months, thanks to its impressive gains and strong community support. But what cues could be driving SHIB’s price action today?
Recent data from CryptoQuant and Santiment might offer some interesting cues.
Here's a closer look at the cues that could be driving Shiba Inu price today.
On-Chain Cues Could Be Driving SHIB Price
Data from CryptoQuant shows a significant shift in SHIB’s exchange netflow. In the past few days, there has been a substantial negative net flow, with billions of SHIB tokens being withdrawn from exchanges.
Usually, the trend suggests accumulation as investors move their holdings from exchanges to private wallets, reducing the immediate selling pressure. In the last 30 days, net flows have dipped dramatically, suggesting a strong inclination towards holding rather than selling.
Data from Santiment on SHIB distribution by balance supports the bullish narrative. While large holders, or ‘whales,’ have reduced their holdings, smaller holders have remained stable or increased their positions.
Precisely, the percentage of SHIB held by addresses with balances between 100,000 and 1 million coins and 10 million to 100 million coins has shown resilience and growth. The shift suggests that while some whales might be offloading, the broader base of investors remains confident.
Despite the larger holders’ cautious stance, the overall sentiment appears optimistic. The consolidation phase indicated by stable open interest and funding rates hints at a market waiting for new catalysts.
The anticipation could lead to a breakout, especially with accumulating signals of reduced sell pressure and steady accumulation by smaller holders.
SHIB Price Moving Inside A Bullish Pattern
Shiba Inu price has formed a bullish technical setup called the ‘bull flag pattern.’
The memecoin rebounded off the flag’s support trendline after bulls avoided a break out below the pattern, which could have invalidated the setup.
A bull flag pattern forms when a crypto token’s price experiences a near-vertical rise, creating the flag pole. This pattern commonly emerges in assets that are in a strong uptrend.
Following the steep ascent, the asset undergoes a period of consolidation, which creates the flag of the pattern. Despite the initial strong rally, the price holds steady as buying pressure persists. Typically, a breakout from this consolidation phase triggers another significant uptrend.
The pattern reaches completion when the price breaks out from the flag area, effectively resuming the prior upward trajectory. Traders project the breakout’s price target by adding the length of the flag pole to the breakout price level.
According to the rules of technical analysis, if the token confirms the bullish technical pattern, SHIB price might rally nearly 395% to reach the pattern’s theoretical price target near $0.0000794.
It is unlikely that the memecoin will reach the pattern’s target price immediately after confirming it, but a breakout could help attract buyers to the market.
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