Shiba Inu’s 28% Price Surge: Will It Keep Its Bull Run?
The Shiba Inu token has been exhibiting signs of gearing up for a significant surge in its price. However, it remains to be seen if the meme coin will be able to continue with the same momentum.
An analysis of its current price and other factors is essential before the future price movements of SHIB can be predicted.
Consolidation to Surge
The recent price action of the second-largest meme token in the market has been quite interesting recently. The latest movements in its price make it quite clear.
Just before there was a crash in the broader crypto market, the Shiba Inu token had been in a consolidation phase and had shown a bullish flag pattern.
However, there was a 37% drop in the price of the SHIB token at this point, which saw it reach the key flag support level.
This level is considered of the utmost importance for investors who are keeping an eye out for a further decline, or for a breakout.
But, then there was a correction in the price of the meme token, which saw it go up by 28%. This points towards a build-up in the upward momentum, as bulls appear to be returning to the fray once more.
The Signs
This recovery is an indication that the bulls may not be completely out of the equation. Therefore, there is a strong possibility that more upward moves might be coming for the Shiba Inu token.
The Relative Strength Index (RSI) is also in oversold territory, which means that there is a potential reversal in the works.
Another notable development that took place in the Shiba Inu ecosystem is the burning of the SHIB tokens in the last 24 hours.
During this time, SHIB tokens valued at $2.9 million were sent to dead wallets. This big burn was reported by the Shibburn Tracker.
It further supports the bullish sentiment surrounding the meme coin.
Positive Aspects
There are also other positive signs that can be seen. Data shows that about 45.32% of holders of the Shiba Inu token are currently in the green.
This means that they are in profit, as the tokens they have were bought at a lower price than the current one in the market.
The fact that there is a high number of profitable token holders shows strong confidence in the SHIB token.
Apart from that, data from Coinglass also shows that the volatility associated with the Shiba Inu token is relatively high. At publishing time, it stood at about 73%.
When this market volatility is taken into account with the recent burning and price action, it shows that investors and traders are monitoring Shiba Inu’s movements very closely.
Due to the recent surge in its price and its strong holder base, market sentiment is quite optimistic. Its strong holder base also showcases the possibility of a bullish run.
