According to U.Today, Shiba Inu (SHIB) is nearing the upper edge of a descending wedge pattern, suggesting a potential significant move. Historically, this pattern has been associated with spikes in volatility, which could lead to breaching local moving averages and initiating a long-term reversal. However, there is also a possibility that SHIB could reverse and retrace its losses back inside the wedge.
SHIB has been on a downward trajectory since its peak earlier this year. The bearish momentum is evident as the 50 EMA is above the current price. If SHIB can break through this level, it might signal the start of a bullish phase. The 200 EMA and the 100 EMA are the next significant resistance levels to monitor for any sustained upward movement.
On-chain data provides additional insights, showing that the majority sentiment is currently negative, with strong selling pressure indicated by exchange signals. Despite this, net network growth is slightly positive, indicating some new interest in SHIB. However, this is not strong enough to counterbalance the bearish exchange signals. SHIB is under the bid-ask volume imbalance, revealing a significant tilt toward sellers.
At the current price, 51% of SHIB holders are profitable, while 47% are not, which might lead to more selling pressure from those trying to offset their losses. The percentage of large holders is 73%, a high number that could cause a volatility surge if these holders decide to sell. Additionally, there is a 0.59 correlation between SHIB and Bitcoin, indicating that Bitcoin's performance has a moderate to no impact on SHIB's price movements.
