With its price approaching the upper edge of a descending wedge pattern, Shiba Inu is poised for a big move. This pattern has historically been seen to precede spikes in volatility, which, if they occur, have the potential to breach local moving averages and initiate a long-term reversal.
Remember though that there is a chance SHIB could reverse course and retrace its losses back inside the wedge. SHIB has been on a downward trajectory since its peak earlier this year, according to an analysis of the provided chart. There is bearish momentum when the 50 EMA is above the price. This level could indicate the start of a bullish phase for SHIB if it is able to break through.
SHIB/USDT Chart by TradingView
The 200 EMA and the 100 EMA represent the next significant resistance levels, which are crucial to keep an eye on if there is any sustained upward movement. Additional insights can be obtained from on-chain data. The majority of the sentiment at the moment is negative, and exchange signals show strong selling pressure.
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Though it is not strong enough to counterbalance the bearish exchange signals, net network growth is slightly positive, indicating some new interest. To further emphasize the selling pressure, SHIB is under the bid-ask volume imbalance and reveals a significant tilt toward sellers. A total of 51% of holders are profitable at the current price, according to token summary data, while 47% are not.
This might result in more pressure to sell from people trying to offset their losses. The percentage of large holders is 73%, a high number that could cause a volatility surge if these holders choose to sell. Since there is a 0.59 correlation between SHIB and Bitcoin, the performance of Bitcoin has a moderate to no impact on SHIB's price movements.
