beincrypto.com
Shiba Inu ($SHIB) price is close to breaking out of a bullish pattern that could send the meme coin shooting up on the charts.
Indeed, holders are beginning to exhibit conviction, which could propel $SHIB to new year-to-date highs.
Shiba Inu Investors’ Conviction Grows
Shiba Inu’s price is on the verge of a bullish breakout, and by the looks of it, investors are acting more and more optimistic. This is visible from the decline in the active $SHIB deposits.
This metric measures the daily transfers of tokens from investors to the exchanges, suggesting bearishness in case of inclines and bullishness during declines. The case with $SHIB is the latter, further substantiated by the supply movement between addresses.
Currently, more and more $SHIB tokens are changing hands from short-term investors to long-term holders. The former holds an asset for less than a month, while the latter is known to hold its supply for one to 12 months.
This shift from short to long-term holders is considered a bullish development since the supply will likely be held for a longer period and will not be sold. It also highlights increasing conviction among the meme coin investors, which, in extension, helps with price rises.
Read More: 6 Best Platforms To Buy Shiba Inu ($SHIB) in 2024
$SHIB Price Prediction: A 42% Breakout
Shiba Inu’s price trading at $0.00002852 is close to breaking out of the symmetrical triangle pattern. Such a pattern is formed when two converging trend lines meet, indicating a period of indecision in the market.
In the case of $SHIB, a breakout would potentially result in a 42% rally. According to the pattern, the altcoin would reach the target set at $0.00004205.
Read More: How To Buy Shiba Inu ($SHIB) and Everything You Need To Know
However, if this breach fails and bearish woes dominate the cryptocurrency, $SHIB could fall through the pattern. This would result in the Shiba Inu price losing the support of $0.00002584. Further declining to $0.00002268 would invalidate the bullish thesis.