NOIDA (CoinChapter.com) — Shiba Inu (SHIB) fans continue to celebrate the platform’s minor advancements as bullish cues, with every new one prompting the so-called ‘Shibarmy‘ to speculate when SHIB prices might reach the significant $1 mark.
SHIB fans celebrated the increase in the number of active accounts on Shibarium, the memecoin’s blockchain solution. Per data from Shibariumscan, the number of active accounts surged from 554 to 826, marking a spike of 49%. In addition, the number of new accounts per day also surged to 186. However, the metrics do not necessarily translate to a bullish cue for the SHIB token, but only imply that on-chain activity spiked a bit. A rise in on-chain activity doesn’t necessarily translate to a bull run for the asset and the declaration of a bull run for SHIB token is likely premature.
SHIB Price Forms Bullish Pattern
The movement of the Shiba Inu token price is demonstrating a bullish technical pattern called the ‘Falling Wedge,‘ likely triggering bullish indicators for SHIB. A pair of converging trend lines form the falling wedge pattern. The pattern occurs when an asset’s price makes lower highs and lower lows steeper than highs.
The familiar pattern typically signals that a reversal to the upside is likely. The price target for the pattern is equal to the widest distance between the trend lines at the start of the pattern added to the breakout point. A breakout with substantial volume can signify strong market conviction, thereby increasing the likelihood of continuing the trend.
Per the rules of technical analysis, the SHIB price could spike over 117% to reach a theoretical price target near $0.000021 if the pattern pans out. Historically, the pattern has been a precursor to significant bullish runs when accompanied by increased trading volume, prompting SHIB fans to be optimistic about future gains.
SHIB Bull Run Stutters, Bears Start Selling
Meanwhile, the SHIB price’s nine-day-long rally seems to be losing steam. The memecoin’s price spiked nearly 3% to a daily high near $0.0000099 on Feb. 15 before bears pared gains. If the sell-off continues, the SHIB price could drop to the 100-day EMA (blue wave) near $0.00000921. Breaching the immediate support might see the memecoin’s price test the support near $0.00000856 before recovering again.
The RSI is above 50 but below the overbought threshold of 70, with a score of 61.31 on the daily charts, indicating that there might be more room for upward price movement before the asset becomes overbought. As such, if the rally continues, the SHIB price might break above the immediate resistance near $0.0000104 before targeting the resistance near $0.0000115.
