Shiba Inu is currently forming a falling wedge pattern on its daily timeframe, which could potentially lead to a 50% increase in price to the $0.000034 region. Dami DeFi, a crypto commentator and market analyst, has highlighted this pattern and believes it could signal a significant move for Shiba Inu.
Previously, Shiba Inu experienced a 380% surge from February 25 to March 5, reaching a yearly high of $0.00004567. However, due to market volatility and a decrease in momentum, SHIB was unable to sustain this high and retraced nearly 50% from its peak on March 5.
Dami’s analysis suggests that this retracement could be beneficial for Shiba Inu. Interestingly, SHIB has formed a falling wedge pattern during this drop. A falling wedge consists of two converging downward-sloping trendlines and indicates a potential reversal in the current downtrend, with the possibility of a breakout to the upside.
Furthermore, on-chain data from CryptoQuant shows a significant decrease in Shiba Inu reserves on exchanges since February 29. This suggests that investors are withdrawing their SHIB tokens from exchanges, possibly for long-term storage. This decrease in exchange reserves reduces selling pressure and can support price action.
Based on these observations, Dami predicts that Shiba Inu will experience a substantial price increase once it breaks out of the falling wedge pattern. The immediate target is a 50% surge, which would bring SHIB to $0.00003456.
Currently, Shiba Inu is trading at $0.00002304, showing a slight decrease of 0.17% over the past 24 hours. SHIB’s derivatives data is giving mixed signals, with a 26% decrease in volume to $228 million and a small 1.22% increase in Open Interest to $66.9 million. SHIB’s immediate goal is to surpass the $0.00002350 mark to protect against further declines.
Please note that this article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are the author’s own and do not reflect the views of The Crypto Basic. It is recommended to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses.