Shiba Inu performed quite well in October, but November may see even better performance. In fact, at the time of writing, memecoin seems to be moving in a pattern similar to its larger competitors from a few weeks ago.
Since May, the price trend of Shiba Inu appears to have formed a cup-and-handle pattern, which bottomed between August and September. This is an important observation as Dogecoin just experienced a strong rise at the end of October, completing the second half of the curve.
The value of SHIB appreciated significantly from September to October, during which memecoins also experienced considerable volatility. However, it is worth noting that the average increase from SHIB's opening price to its closing price in October was less than 3%.
Although October turned out to be rather uneventful, the cup-and-handle pattern of the memecoin suggests that the bulls may perform strongly in November. At the time of publication, SHIB was trading at $0.0000175, but if it surges to $0.000027, the curve will be completed.
This suggests a potential 56% upside in the next four weeks.
Zooming in on the daily chart, it can be observed that another pattern may be unfolding here. Shiba Inu has been forming a wedge pattern and is rapidly approaching a breakout or collapse zone. This may explain why it struggled to surge in October.
By mid-November at the latest, a breakout in form is expected, and the price may recover a broader cup-and-handle formation. If this occurs, it implies that accumulation might begin in the next two weeks.
Is Shiba Inu experiencing low-price accumulation?
On-chain data shows that whale activity has been continually increasing over the past four weeks. Whale balances grew from 590 trillion SHIB at the end of September to 591.01 trillion SHIB at the end of October.
During the same period, the investors' balance was negative. Over the past four weeks, their balance decreased from 130.76 trillion SHIB to 129.4 trillion SHIB. Retail-held Bitcoin also fell from 262.99 trillion to 262.88 trillion.
Finally, exchange data shows that inflows of Shiba Inu have dominated over the past four weeks. This aligns with the difficulty in achieving significant price increases.
The bullish outcome is characterized by outflows exceeding inflows. At the same time, the number of addresses held by different tiers (especially whales) will also see strong growth.