Shiba

Rally

Wednesday

Shiba Inu

Shiba Inu price suffered a steep correction in the August 4 market crash. Despite the following recovery, SHIB struggles to reclaim its previous highs as the market remains fearful. SHIB price dropped by 2.5% on Wednesday as on-chain metrics signal a bullish storm forming. The Shiba Inu chart sports a potential double bottom formation that could turn the tides for the dog-themed meme coin.&nbsp;&nbsp;
<h2 id="shiba-inu-price-wants-to-break-out">Shiba Inu Price Wants to Break Out</h2>
<a href="https://coingape.com/price/shiba-inu" rel="noopener noreferrer nofollow">SHIB price</a> chart currently displays a falling channel, suggesting a persistent downward trend. Recently, the price tested the lower boundary of the channel, signaling a potential short-term reversal or continuation of the downtrend depending on the upcoming price action.
The 50-day EMA ($0.00001718) and the 200 EMA ($0.00001855) are the immediate resistance levels, with the latter being stronger due to its long-term significance. The upper boundary of the descending channel, around $0.000015, could also act as resistance.&nbsp;
On the flip side, the lower boundary of the channel, around $0.000011, provides a key support level. If the price breaks below the channel, the next significant support would be around $0.000008, inferred from previous consolidation levels.
The recent candlesticks near the lower channel boundary suggest a potential double-bottom pattern, a bullish reversal pattern. If confirmed, this could lead to a short-term rally to $0.00001855, and if surpassed, the price may rise higher to $0.00002748.&nbsp;
The Relative Strength Index (<a href="https://coingape.com/glossary/rsi-relative-strength-index/" rel="noopener noreferrer nofollow">RSI</a>) is at 31.47, near oversold territory. This indicates that the asset might be undervalued in the short term, often a precursor to a bounce or reversal. The Chaikin Money Flow (CMF) is at 0.07, indicating a slight positive money flow, which suggests some buying interest is building.
<figure id="attachment_211317" aria-describedby="caption-attachment-211317" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-211317" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-3.jpeg" alt="Shiba Inu Price Chart" width="1280" height="538" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-3.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-3-300x126.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-3-1224x514.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-3-768x323.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-3-150x63.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px">
 <figcaption id="caption-attachment-211317" class="wp-caption-text">
 Shiba Inu Price Chart
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</figure>
<a href="https://coingape.com/price-predictions/shiba-inu-shib-price-prediction/" target="_blank" rel="noopener noreferrer nofollow">Shiba Inu price prediction</a> shows that if the price breaks above $0.000014 and closes above the 50-day EMA, it may signal market strength, turning SHIB bullish.&nbsp;The next price target would be around $0.00001855, which is where the 200 EMA resides and also near the upper boundary of the channel.
<h2 id="on-chain-analysis-support-inbound-rally">On-Chain Analysis Support Inbound Rally</h2>
Data from <a rel="noopener noreferrer nofollow" href="https://www.shibariumscan.io/stats">Shibarium Scan</a>, the official Shiba Inu Chain explorer, shows New accounts on the network hit a new all-time high on August 6. This signals increasing levels of adoption, which usually translates into a bullish sentiment for Shiba Inu price.
<img decoding="async" class="aligncenter size-full wp-image-211318" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-5.jpeg" alt="Shiba Inu Accounts " width="1280" height="508" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-5.jpeg 1280w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-5-300x119.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-5-1224x486.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-5-768x305.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-5-150x60.jpeg 150w" sizes="(max-width: 1280px) 100vw, 1280px">
According to <a rel="noopener noreferrer nofollow" href="https://app.intotheblock.com/coin/SHIB/deep-dive?group=all&amp;chart=all">IntoTheBlock</a> data, SHIB witnessed an increased amount of large transactions on August 5, which signals increased whale activity. This spike dropped on August 6, but is still higher compared to the previous 7 days.
<img decoding="async" class="aligncenter size-full wp-image-211319" src="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-4.jpeg" alt="SHIB Volume" width="1200" height="800" srcset="https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-4.jpeg 1200w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-4-300x200.jpeg 300w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-4-768x512.jpeg 768w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-4-150x100.jpeg 150w, https://coingape.com/wp-content/uploads/2024/08/WhatsApp-Image-2024-08-07-at-12.55.06-4-272x182.jpeg 272w" sizes="(max-width: 1200px) 100vw, 1200px">
An increase in whale activity, coupled with rising Shiba Inu prices, signals renewed interest in the asset. This renewed interest could lead to a subsequent price increase. A volume increase accompanying any upward movement would be a stronger signal for a potential reversal.
The post <a href="https://coingape.com/markets/shiba-inu-price-analysis-on-chain-metrics-signal-40-potential-rally-ahead/" rel="noopener noreferrer nofollow">Shiba Inu Price Analysis: On-Chain Metrics Signal 40% Potential Rally Ahead</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Shiba Inu Price Analysis: On-Chain Metrics Signal 40% Potential Rally Ahead

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