Shiba Inu Price May Recover Its March Highs – All the Details

• Shiba Inu price dropped more than 12% in the last seven days
• Market Metrics and Indicators Looked Bullish on SHIB Charts

Shiba Inu [SHIB] has been underperforming for several days as both its weekly and daily charts were in the red. However, investors should not lose hope as this bearish price action could just be the prelude to a massive bullish rally ahead, one that may allow SHIB to reach new highs soon.

Shiba Inu is coming into its own

CoinMarketCap’s data revealed that memecoin witnessed a double-digit price drop of 12% in the last seven days. Its 24-hour chart also remained in the red as its price dropped marginally. At the time of writing, SHIB was trading at $0.00001795 with a market capitalization of over $10.58 billion.

AMBCrypto’s look at IntoTheBlock data revealed that only 52% of SHIB investors made profits, which can be attributed to this latest price correction. However, there seemed to be more to the story as SHIB was consolidating within a bullish pattern on the charts.

Our analysis also revealed that SHIB has been consolidating within the pattern since early March. Since then, SHIB has been rejected twice from the upper boundary of the falling wedge pattern.

At press time, memecoin was testing its support on its chart. A successful test and breakout could trigger a bullish rally. If things go well, then SHIB could also regain its March highs in the coming weeks or months.

Will SHIB start a demonstration?

Since there seemed to be chances of a trend reversal, AMBCrypto analyzed SHIB’s on-chain data to see what the metrics suggested. According to our analysis, buying pressure on SHIB increased last week, as evidenced by spikes in its currency outflows. The fact that investors were buying SHIB was demonstrated by the increase in its supply outside the exchanges and the fall in its supply on the exchanges.

Whales have also been actively buying memecoin as supply from major addresses has increased in recent days.

There was also better news as at press time, SHIB Fear and Greed Index was worth 36%, meaning the market was in a “fear” phase. Whenever the metric reaches this level, it indicates that the chances of a price increase are high.

Finally, AMBCrypto’s analysis of SHIB’s daily chart revealed that its Relative Strength Index (RSI) was in the oversold zone.

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The Chaikin Money Flow (CMF) recorded a rally, implying that investors could soon see SHIB paint its charts green. However, the MACD continued to support the sellers as it projected a bearish advantage in the market.

This is an automatic translation of our English version.