Looking at the Possibility of a 50% Surge for SHIB: An Onchain Analysis

Shiba Inu (SHIB), one of the most talked-about meme tokens in the market, has been relatively stagnant over the past few weeks. However, onchain data and market conditions suggest that SHIB could be on the verge of a breakout. With the possibility of a 50% price surge on the horizon, now is a crucial moment for traders and investors alike to examine SHIB’s current position in the market.

In this analysis, we’ll delve into how SHIB has been maintaining its support levels, what the onchain data tells us about holders and market sentiment, and what key price zones traders should be watching. We’ll also look at how SHIB could break out of its downward trend and where you can easily trade SHIB for potential gains.

SHIB’s Stagnant Phase and Support Levels

Lately, SHIB’s price movement has been relatively quiet, showing little movement in either direction. Despite the lack of major action, SHIB has maintained a solid support zone, suggesting that it still holds potential for upward movement if market conditions improve.

At the moment, SHIB is holding steady above its critical support zone. This price point has acted as a floor for the token, preventing it from dropping further. Although the token hasn’t seen any significant rallies recently, this steady support level signals that SHIB could be gearing up for a breakout if the broader crypto market turns bullish.

It’s not unusual for prices to remain stagnant for extended periods before a sudden surge. SHIB is no exception to this, and its ability to stay above key support levels is a positive sign for potential upward momentum. As market sentiment improves, SHIB could be poised for a significant increase in price.

Onchain Data: Holders Are Sticking to SHIB

When we examine onchain data, it becomes clear that SHIB holders are not in a rush to sell. One of the most promising signs for SHIB is the negative netflow of tokens on exchanges. 

This data shows that more SHIB is being withdrawn from exchanges and stored in private wallets, rather than being sent to exchanges to be sold. This behaviour typically indicates that holders are expecting a price increase and are not looking to liquidate their positions.

Additionally, SHIB’s derivatives market has been experiencing positive volume, with more traders preparing to buy into the token. 

As open interest and buying volume continue to rise, this suggests that traders are becoming more confident in a potential price surge. The combination of long-term holders retaining their tokens and traders gearing up to buy indicates that bullish momentum could be building for SHIB.

The negative netflow data hints at a growing confidence among SHIB holders, reinforcing the idea that they believe in the token’s long-term value. When investors move their tokens away from exchanges, it generally reflects a desire to hold onto their assets rather than sell during uncertain times. If this sentiment continues, SHIB may see an even stronger upward push in the near future.

SHIB’s Potential Breakout and Key Price Levels

Technically speaking, SHIB is currently trapped in a descending triangle pattern, a common indicator of price consolidation before a potential breakout. At the moment, SHIB is attempting to break out of its downward trend, but the token needs to clear key price levels to confirm this breakout.

The critical support level to watch is $0.0000127, as previously mentioned. As long as SHIB remains above this price point, there is potential for upward movement. However, the next major resistance level sits at $0.0000139. If SHIB can successfully break above this resistance level, the token could experience a rally of up to 50% over the next few days.

While the possibility of a 50% surge is exciting, traders should approach with caution. The crypto market is notoriously volatile, and although SHIB is showing signs of a potential breakout, nothing is guaranteed. It’s essential to keep risk management strategies in place, especially when dealing with meme tokens that can experience sudden price swings.

Monitoring SHIB’s price action closely over the coming days will be key to spotting any breakout opportunities. Traders who are well-prepared can take advantage of the token’s upward momentum while mitigating potential risks.

Trade SHIB Easily on Bitrue

For traders looking to capitalise on SHIB’s potential breakout, Bitrue offers a seamless platform to buy, sell, and trade SHIB with ease. Bitrue has made it simple for both experienced and new traders to access SHIB and other popular cryptocurrencies, offering a user-friendly interface and competitive trading fees.

Whether you're holding SHIB for the long term or planning to trade during short-term price swings, Bitrue provides a convenient and secure environment for all your transactions. Keep an eye on Bitrue's blog for the latest updates and insights on SHIB and other trending tokens, ensuring you stay ahead of the market.

Conclusion

While SHIB’s price has been relatively stagnant, the combination of strong support levels, promising onchain data, and positive derivatives volume indicates that the token could be preparing for a significant breakout. 

However, traders should remain cautious and employ proper risk management techniques, as the market can turn quickly. For those interested in taking advantage of SHIB’s potential, Bitrue offers a reliable platform for easy trading and access to the latest market updates.

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Frequently Asked Questions

Q1: What is causing SHIB to potentially break out?
SHIB’s potential breakout is driven by strong support at $0.0000127, onchain data showing negative netflow (indicating long-term holders), and increasing buying volume in the derivatives market.

Q2: How high can SHIB go if it breaks out?
If SHIB successfully breaks above the resistance level of $0.0000139, it could experience a 50% price surge in the next few days.

Q3: Where can I buy and trade SHIB?
You can buy and trade SHIB on Bitrue, a user-friendly platform that offers competitive fees and easy access to the latest market updates.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.