• Shiba Inu price has been moving in a tight range for more than two weeks.
  • The sideways movement combined with declining volume suggests that SHIB is due for a massive breakout move.
  • The MACD indicator retreating red histogram bars and converging lines indicate an increase in short-term bullish momentum.

Shiba Inu price shows an extended consolidation after a massive flash crash caused by Ethereum creator Vitalik Buterin, after he pulled the SHIB liquidity from Uniswap. The dog-themed cryptocurrency is trading sideways, awaiting a trigger for a massive breakout move.

Shiba Inu price technicals point to a 100% upswing

Shiba Inu price dropped a whopping 83% to $0.00000654 from May 10 to May 19. This nosedive was triggered after Vitalik Buterin sold his gifted 2 trillion in SHIB, worth $40+ million on May 12.

The plummet caused some damage to the meme coin, but price action since this drop has developed a consolidation in a tight range. Interestingly, the volume for this sideways movement is declining, suggesting that Shiba Inu price is coiling up for a massive move higher.

Further supporting this rally is the Moving Average Convergence Divergence (MACD) indicator, which shows declining histograms indicating a decrease in short-term selling momentum.

Moreover, the short length moving average (12 MA) is heading higher, converging toward the slow length moving average (26 MA).

This technical setup reflects a bullish move waiting to happen.

If the 12 MA moves above the 26 MA, it will indicate a bullish crossover, confirming a shift in momentum toward the bulls.

If Shiba Inu price produces a decisive close above the 23.6% Fibonacci retracement level at $0.0000103, it will confirm the start of an uptrend. Such a move might trigger a 100% upswing that places SHIB at $0.0000203, coinciding with the 50% Fibonacci retracement level.

The 38.2% Fibonacci retracement level at $0.0000158 will play a crucial role in shaping the said bull rally.

SHIB/USD 1-day chart

SHIB/USD 1-day chart

On-chain metrics indicate fearless whales on an accumulation spree

Whales holding more than 100,000 SHIB have been buying the meme coin despite the 83% drawdown from its peak. Since May 20, these large investors have increased from 390,000 to 435,000.

This 11.5% increase indicates that these market participants are optimistic about the price performance of Shiba Inu.

Shiba Inu supply distribution chart

Shiba Inu supply distribution chart

Further explaining the accumulation is Santiment’s 30-day Market Value to Realized Value (MVRV) model. This fundamental index tracks the profit/loss of investors who purchased SHIB in the past month and shows that Shiba Inu price is in an “opportunity zone.”

At the time of writing, this metric is displaying -39%, indicating that the short-term sellers are panic-selling, providing the long-term holders to accumulate.

Shiba Inu 30-day MVRV chart

Shiba Inu 30-day MVRV chart

Fundamentals theorize a bright future

While the on-chain metrics are straightforward, fundamentals give an idea of the potential a project/company might have.

As for Shiba Inu, there are three main points of interest – ShibaSwap, Shiba Inu and NFTS, Shiba Inu Rescue.

ShibaSwap is a decentralized exchange (DEX) expected to house two other tokens – LEASH and BONE – that the project is creating. While both the tokens are ERC-20, they follow different token economics. 

The DEX, according to the whitepaper (woofpaper), will have yield farming capabilities.

Another direction that Shiba Inu is focusing is the Non-Fungible Token (NFT) industry via its artist incubator, which will invite creators from various genres and platforms to create NFTs that are tradable on the ShibSwap DEX.

Lastly, the most impactful path that Shiba Inu is making is an effort to rescue Shibas around the world. In this direction, the Shiba Inu token utilizes Amazon’s built-in Smile feature to donate to this cause.

To conclude, Shiba Inu price range-bound for the momentum, but the launch of ShibaSwap or a significant development on the NFT hold the key to potentially triggering the 100% upswing detailed above.

Despite being tagged the “Dogecoin killer,” both the cryptocurrencies are primarily driven by retail hype and frenzy. Therefore, a potential spike in social mentions or celebrity endorsements could also add a tailwind to the bull rally that could double Shiba Inu price.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation

Dogecoin Price Forecast: Bulls deploy $355M in DOGE longs amid Gensler exit confirmation

Dogecoin price crossed $0.40 on Friday, after a weeklong consolidation that saw DOGE tumble 13% from last week’s peak. Derivative market reports link the DOGE rally to Gary Gensler’s  imminent exit.

More Cryptocurrencies News
Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout

Crypto Today: XRP gains 10%, Cardano, XRP, and DOGE price rallies, delay Bitcoin’s $100K breakout

The global cryptocurrency sector pulled $230 million capital inflows on Friday, as markets reacted positively to news of SEC Chair Gary Gensler’s imminent exit.

More Crypto News
Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment

Cardano Price Forecast: ADA could rally by another 30% as on-chain data signals bullish sentiment

Cardano (ADA) surged 24% to $0.98 on Friday following rising weekly active addresses, increased open interest and spot buying pressure.

More Cardano news
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP