An analyst recently highlighted Shiba Inu breakout above a crucial trendline, signaling a potential price surge for the token.
Notably, Shiba Inu (SHIB) reached a multi-month high of $0.000033 in December 2024 but has since fallen to the $0.00002 range. Despite attempts to regain upward momentum, the token has struggled to sustain significant rallies. As of today, SHIB is trading at $0.00002223, showing a slight recovery.
While SHIB has performed poorly over the past month, the token has gained 3% in the last 24 hours and 4.40% over the past week.
Amid these recovery efforts, an analyst on X has identified a potential bullish signal based on a key trendline breakout.
Shiba Inu Ready for Pump after Breaking Downward Trendline
SHIB Knight, a pseudonymous analyst on X, highlighted a key technical development in Shiba Inu’s price movement on January 15. According to him, “Shiba Inu is ready to pump.”
The analyst’s chart showcases a downward trendline connecting SHIB’s lower highs, which has consistently represented bearish sentiment over recent sessions. Notably, SHIB has broken above this trendline, a move that often signals a shift in market sentiment.
Breakouts from such trend lines typically indicate that sellers are losing control while buyers gain momentum.
According to the analyst, the Shiba Army should prepare for a pump, as this pattern could start a new upward trajectory for SHIB.
Large Holders Exhibit Interest
Supporting this potential shift, data from IntoTheBlock reveals increased activity among SHIB’s large holders.
Over the past seven days, the net flow of SHIB into large accounts has risen by +1.93%, reflecting renewed accumulation. On a longer time frame, the 30-day net flow has surged by +765.83%, showing substantial accumulation following the December dip.
However, the 90-day net flow remains negative at -17.80%, indicating that SHIB has not fully recovered from earlier selling pressure. These mixed signals suggest that while confidence among large holders is growing, long-term caution persists.
Derivatives Data Promise Interest
Furthermore, derivative activity for SHIB also shows promising signs. A 30.74% increase in trading volume to $187.03 million suggests heightened interest in the token.
Further, open interest has risen by 9.90%, reaching $486.69 million, signaling that more traders are positioning themselves for potential price moves.
Liquidation data also underscores this momentum, with $405.15K liquidated in the past 24 hours. In the same time frame, $234,220 in short positions were liquidated, suggesting that bearish traders were caught off guard by SHIB’s price action.
Meanwhile, $170,920 in liquidated long positions reflects active trading during the upward movement.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
