4 Reasons Why Shiba Inu Price is Primed For Breakout

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have witnessed countless bull runs and bear markets, yet none has been as intriguing as the recent surge of Shiba Inu (SHIB). Having closely monitored its price action and on-chain metrics, I am confidently optimistic about SHIB’s breakout potential.

The price of Shiba Inu, a well-known meme cryptocurrency, has seen a significant increase in value since Bitcoin reached its record high of $107,000. Over the last month, SHIB has experienced a 10% price rise, indicating a growing number of investors taking notice. Despite meme coins generally performing well, Shiba Inu seems poised for even more growth. Let’s delve into 4 main reasons explaining why Shiba Inu could see further bullish momentum, focusing on its recent trends and the increased market enthusiasm.

Reasons For Shiba Inu Price to Breakout & Rally

  • The Shiba Inu price is showing strong signs of a potential breakout. This is driven by an inverse head-and-shoulders chart pattern signaling a bullish reversal and supportive on-chain metrics. 
  • The 30-day MVRV is below zero, indicating reduced selling pressure as traders hold rather than sell at a loss. The declining supply of Shiba Inu price on exchanges suggests further bullish momentum, as fewer tokens are available for immediate sale. 
  • Lastly, the Global In/Out of Money metric shows low resistance going ahead 16% of holders are Out of the money, rendering the possibility of selling pressure insignificant. With these 4 factors falling in line with each other, the meme coin looks ready for a massive breakout as investor attention was captured.

Shiba Inu Price Is Primed For Breakout

To find the target, first measure the distance from the lowest part of the head to its right edge and then add that to the breakout point. Alternatively, you can measure the distance from the head’s bottom to the neckline and combine it with the breakout point. This pattern suggests a possible upward trend for Shiba Inu, pointing towards a potential value of 0.000023, indicating significant bullish momentum.

On-chain Metrics Suggest Reduced Selling Pressure on SHIB

The price of Shiba Inu could potentially rise due to reduced selling pressure indicated by recent on-chain analysis. Specifically, the 30-day MVRV ratio (a measure that shows average profit or loss per token held by investors) has significantly dropped, suggesting that fewer investors are opting to sell at a profit.

The amount of SHIB available for sale on exchanges is relatively low, hinting at less supply for trading. This situation frequently suggests a possible bullish turnaround since investors tend to hold onto their investments rather than cashing out. Lower selling pressure and increased confidence among investors could spark an upward trend in the price of SHIB.

Shiba Inu Price Rally Likely as Majority SHIB Holders In Profit

A large number of Shiba Inu investors are currently making a profit, suggesting that the price might continue to rise. Based on the GIOM metric, about 86.31%, or 849.56 trillion Shiba Inu tokens, are in profit. On the other hand, around 6% (62.64 trillion SHIB) of holders have neither gained nor lost money, and just 7% (72.13 trillion SHIB) find themselves in a loss position.

Currently, at this moment, the Shiba Inu (SHIB) coin is being exchanged for approximately 0.00002727 USD per token, showing a modest increase of about 2% over the past 24-hour period. This upturn mirrors the broader crypto market’s upward trend, with Bitcoin (BTC) maintaining a position above $107k and Ethereum (ETH) surging beyond $4k, driving this momentum. If this positive trend persists, it is speculated that the Shiba Inu price could reach around 0.00004 USD by the end of 2024.

To put it simply, the positive trends in Shiba Inu’s chart patterns, less resistance in sales, and robust on-chain indicators suggest that a surge above current prices towards new record highs might be imminent, given the increasing optimism among investors.

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2024-12-17 18:00