- SHIB could soar 100% to the $0.0000324 level or even higher if it closes a weekly candle above the $0.0000155 level.
- SHIB’s Open Interest in the last 24 hours has increased by 11%, indicating higher interest from investors.
Since the beginning of August 2024, the overall cryptocurrency market has experienced a downturn, primarily driven by continuous price drops across various cryptocurrencies.
Amid this decline, Shiba Inu [SHIB], the world’s second-largest memecoin, has formed a bullish price action pattern on a weekly time frame, indicating a potential significant upside rally in the coming days.
SHIB’s bullish price action
Based on price action and technical analysis, SHIB has formed a bullish falling wedge price action pattern on a weekly time frame. This pattern is also on the verge of a breakout, which could occur soon.
If SHIB breaks out this bullish price action pattern, there is a high chance it could soar 100% to the $0.0000324 level or even higher.
However, the breakout alone is not the only factor that makes SHIB bullish, a weekly candle closing above the $0.0000155 level is also crucial.
Source: TradingView
Besides the falling wedge pattern, at press time, SHIB was at a crucial support level near $0.000012. The last time SHIB broke this level was in February 2024 — not a retest.
However, the continuous price drop has now led to a retest, which could support SHIB in the upcoming rally.
Also, crypto analyst Javon Marks made a post on X (formerly Twitter) stating that SHIB was bullish and near a breakout level. He also noted that this bullish outlook is confirmed by bullish divergence.
The expert predicted that if SHIB gives a breakout of the falling wedge pattern, it could soar to the $0.000081 level.
Rise of Open Interest
At press time, SHIB is trading near the $0.0000133 level, having experienced a price surge of over 1% in the last 24 hours.
Its trading volume has dropped by 35% during the same period, indicating lower participation from traders and investors.
Despite this, SHIB’s Open Interest had increased by 11% in the last 24 hours, according to the on-chain analytic firm Coinglass.
Whale concentration
At press time, 60.19% of SHIB’s circulating supply was held by seven whales, while 43 sharks held 12.84% of the supply.
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Meanwhile, only 26.96% of SHIB’s supply was in the hands of retail investors, according to on-chain analytics firm IntoTheBlock.
Source: IntoTheBlock
The highest concentration of SHIB has been in the hands of whales and sharks. This is concerning, as they can easily manipulate prices.
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