Why Shiba Inu Price Is Up Today? Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)—The Shiba Inu price spiked more than 14% on July 8 to reach a daily high near $0.000017. The increased interest likely took cues from on-chain metrics and a bullish technical setup, which could be the reason why the price is up today.
Recent data from CryptoQuant and Santiment provide some insights into the cues driving SHIB’s price action.
On-Chain Cues Could Be Why Shiba Inu Price Is Up
Data from CryptoQuant shows a significant shift in SHIB’s exchange netflow. Over the past few days, there has been a substantial negative net flow, with billions of SHIB tokens being withdrawn from exchanges.
Shiba Inu exchange net flow. Source: CryptoQuant
The trend usually 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, which could be why Shiba Inu price is up today.
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.
SHIB supply distribution by balance of addresses. Source: Santiment
Specifically, 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 cautious stance of larger holders, 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
Meanwhile, SHIB 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.
SHIB price formed a bullish technical setup with a 395% upside target. Source: Tradingview.com
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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