Shiba Inu’s Bullish Signals Point to Potential Explosive Gains in the Future
NOIDA (CoinChapter.com)—Since October 28, the Shiba Inu price has experienced a significant surge of almost 12%, although the rally slowed down on October 30. This increase in value can be attributed to the overall bullish conditions in the market, which have resulted in gains across the broader cryptocurrency sector.
The positive market sentiment has spilled over into the SHIB ecosystem, reflecting a growing interest from both retail and institutional investors. On-chain data and an increase in whale accumulation have further strengthened the bullish momentum of the token.
Whale accumulation and a spike in open interest in the futures market have emerged as key indicators of SHIB’s potential for bullish movement.
According to data from Santiment, wallets holding between 1,000,000 and 10,000,000 SHIB coins have been steadily increasing their holdings over the past few weeks, indicating a growing interest from medium-sized investors. Additionally, a gradual recovery in holdings by whale wallets (100,000,000 to 1,000,000,000 SHIB) suggests a possible consolidation phase before a larger price move.
Coinglass data highlights a significant surge in SHIB futures open interest, which rose from under $10 million to around $30 million on October 29, 2024. The increase in open interest and positive funding rates indicate that traders are primarily taking long positions on SHIB, showing confidence in a bullish breakout.
The positive funding rates further reinforce this narrative, as they reflect a growing premium for long trades in the futures market.
These combined indicators suggest that SHIB’s recent gains may be supported by strong whale activity and increasing trader interest, positioning the token for potential further upside. However, the overall market sentiment will play a crucial role in determining the trajectory of this rally.
Furthermore, a bullish technical setup known as the “ascending triangle” could provide additional cues for a bullish movement in the SHIB/USD pair, especially after the token’s correction on October 30.
The ascending triangle pattern occurs when a horizontal resistance line connects swing highs, while an ascending trendline links higher swing lows. This setup indicates increasing buying pressure as the price approaches the resistance level.
The significance of this pattern lies in the potential for a breakout. A surge in trading volume as the price nears the resistance level typically confirms the likelihood of a breakout above it.
The ascending triangle formation suggests that buyers are gaining strength, and a successful breakout could lead to further upward momentum for the SHIB/USD pair. This technical setup provides a clear framework for assessing potential price movements in the near term.
In technical analysis, the price target of the pattern is calculated by measuring its height and projecting it from the breakout point. For the Shiba Inu token, this calculation suggests a price target of approximately $0.0000309, representing a 65% increase from the current level.
