On-Chain Metrics Suggest Shiba Inu Price Will Rise by 42%
Shiba Inu price $SHIB is about to break a bullish pattern that could send the memecoin soaring up the charts.
In fact, holders are starting to show conviction, which could propel SHIB to new year-to-date highs.
This is visible by the decline in Shib's active deposits.
This metric measures daily token transfers from investors to exchanges, suggesting bearishness during declines and bullishness during declines. The case of SHIB is the latter, further corroborated by the movement of supply between addresses.
Currently, more and more SHIB tokens are changing hands from short-term investors to long-term holders. The former holds an asset for less than a month, while the latter is known to maintain its supply for one to 12 months.
This shift from short to long term holders is considered a bullish development as the supply is likely to be held for a longer period and not sold. It also highlights the growing conviction among investors of meme coins, which, in extension, helps to increase prices.
42% breakout
Shiba Inu price trading at $0.00002876 is about to break out of the symmetrical triangle pattern. This pattern forms when two converging trend lines meet, indicating a period of indecision in the market.
In the case of SHIB, a breakout would potentially result in a 42% rally. According to the pattern, the altcoin would reach the target set at $0.00004205.
However, if this breach fails and bearish issues dominate the cryptocurrency, SHIB could fail the pattern. This would result in the Shiba Inu price losing the support at $0.00002584. A further decline to $0.00002268 would invalidate the bullish thesis.
