- Shiab Inu rallies 40% in a day.
- The surge defied a previous pattern, and could erase the recent gains.
- The whales moved in, according to Santiment, provoking a pump.
YEREVAN (CoinChapter.com) – Shiba Inu (SHIB) surged over 40% on Aug. 14, briefly peaking at $0.000018. However, the nonsense rally subsided in the following hours, as SHIB/USD settled at $0.000015 on Monday. Will the decline continue?
SHIB rally short-lived?
In detail, the rally defied a bearish pattern that SHIB traded in since mid-May. As CoinChapter reported, the digital asset printed an “ascending triangle” best visible on the daily chart.
The pattern entails a horizontal resistance that caps the upside attempts and ascending support, preventing breakdowns. However, once the asset exhausts the pattern, traders could anticipate a move in the direction preceding the triangle.
SHIB experienced an over 35% drop on May 11-12. Thus, the possible drawdown after the triangle could be similar, pinning the Shiba Inu target price at $0.0000064. However, the digital asset defied the pattern and rallied against expectations.
Why Shiba-Inu pumped?
Crypto analytical platform Santiment pinned the upside move on whale accumulation that pumped the price. “There have been 433 transactions valued at $100k+, the most in 4 months,” the platform on Aug. 15.
Additionally, during the week of Aug 7-14, the Shiba Inu burn rate was up 824%, creating a supply squeeze and helping the pump. According to the burn tracker ShibBurn, more than 711 million SHIB were sent to dead wallets.
As a result, Shiba Inu outperformed its meme coin rival Dogecoin and other leading digital assets.
Furthermore, it ranked #12 in assets by market cap, replacing Avalanche (AVAX). However, according to on-chain metrics, such as trading volumes, the meme coin could reverse the recent gains and retest the resistance at 0.000012 as support.