Will Shiba Inu (SHIB) Price Rally To $0.00002500 As This Pattern Forms?

Shiba Inu (SHIB) price is currently facing a critical moment as the price action begins to show signs of a potential reversal.

Shiba Inu completed a technical pattern that could cause an upward movement after months of price dip.

With the price consolidating, certain experts indicated a breakout was likely. The price could surge to a new high of 0.00002500.

Formation of a Descending Wedge Pattern in Shiba Inu Price Trend

In the last couple of months, Shiba Inu has been in a descending wedge. The trend is usually a signal that the price may break its downward trend soon.

A descending wedge formed as the price makes successively lower lows and higher lows, with the range between the highs and the lows decreasing as time passes.

According to crypto analysts, such a pattern can be a precursor of a bullish breakout, particularly when they are coupled with rising volume.

It is apparent in the current setup that SHIB price can be in the process of breaking out of this period of consolidation.

A break above the upper trendline of the wedge might lead to an increase in SHIB prices to the range of 0.00002500 to 0.00003000. But that depends on the market conditions and trading volume.

The coin is still trying to test support of around 0.0000115, the probability of a reversal is getting clearer.

Provided the Shiba Inu price remains above this key level, it might result in another bullish action. Nonetheless, the failure to hold above this support area may cause further selling pressure.

Burn Rate Surge and Its Effect on SHIB’s Price

Besides the technical configuration, there has been a positive effort by the Shiba Inu community to shrink the circulating supply of SHIB by burning its tokens.

The burn rate has recently increased by more than 12,000%, as millions of SHIB tokens were transferred to inactive wallets.

Shibburn data shows that 13,090,171 SHIB tokens were burned within a day, decreasing the supply of the token significantly.

Although the short-term impact on the price might be elusive, ongoing token burns may aid price growth in the long run.

This decrease in supply may lead to scarcity that may lead to further price increase provided the demand is constant or increases.

Shiba Inu Whale Activity Shows Signs of Caution

Along the burn rate spike, Shiba Inu also underwent an evident decline on the activity of large holders.

IntoTheBlock on-chain data demonstrates that SHIB inflows by large holders dropped by 97 percent over the last several days.

This implies that the whales may be taking the wait-and-see strategy. And they might be waiting until the market conditions are more opportune to take major actions.

Large holder inflows are usually one of the primary metrics to represent market sentiment and a decline in this value may imply that whales are wary of the overall volatility in the market.

Large holder activity going down may be pointing to investors waiting for further clarity concerning SHIB price future.

Moreover, the same is true seen specifically in the context of recent macroeconomic developments affecting market sentiment.

Despite this, some analysts believe that Shiba Inu could still benefit from a bullish reversal if broader market conditions improve and if SHIB can break out of its current pattern.

Shiba Inu Technical Indicators Point to a Potential Reversal

Along with the descending wedge pattern, other technical indicators are providing a more positive outlook for Shiba Inu price.

The Relative Strength Index (RSI) is currently sitting at 41.09, suggesting that SHIB is not yet in oversold territory. A rise in the RSI above the 50 mark could signal a shift toward bullish momentum.

Additionally, the Moving Average Convergence Divergence (MACD) is observing bullish divergences, which suggests that the trend could be changing toward buyers. Unless these signs weaken, SHIB may experience a positive trend to its target resistance levels.

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