Shiba Inu (SHIB), the popular meme cryptocurrency, is set to undergo potential price movements in February. Traders and investors are closely monitoring technical indicators and on-chain metrics to gauge the direction of SHIB’s price. Let’s take a closer look at what February holds for SHIB traders.
Technical Analysis Insights
According to technical analysis, Shiba Inu is displaying a bullish bias on the 1-day price chart. While it has yet to convincingly break the recent lower high, indicators suggest promise for bullish momentum. The Shiba Inu burn rate turned negative on February 13, signaling a potential shift in market dynamics.
Analyzing the one-day price chart of SHIB, we observe significant obstacles for bulls to overcome. However, odds favor buyers, especially if Bitcoin (BTC) exhibits bullish behavior. The Fibonacci retracement levels highlight the $0.00000854 level as a critical support level, which SHIB has retested multiple times in recent months.
The On-Chain Metrics
On-chain metrics provide further insights into SHIB’s price potential. The mean coin age metric witnessed steady gains in December and January but experienced a sharp downturn in February. This indicates that holders may be moving SHIB to exchanges, potentially leading to selling pressure in the near term.
This indicates that holders may be moving SHIB to exchanges, potentially leading to selling pressure in the near term.
The mean coin age metric noted steady and significant gains in the latter half of December and throughout January. Yet, it took a sharp downturn in February. The downtrend meant holders were moving their SHIB, presumably to centralized exchanges to sell the token.Based on technical analysis and on-chain metrics,Based on technical analysis and on-chain metrics,
Additionally, the supply on exchanges metric has gradually increased in recent weeks, suggesting a higher availability of SHIB for trading. Despite these factors, news of large SHIB whales accumulating the token remains positive for market sentiment.
Price Forecast
Based on technical analysis and on-chain metrics, a move past the $0.0000105 level could flip the market structure bullishly on the daily chart. In this scenario, a rally to $0.00001195 and higher to Fibonacci extension levels may be anticipated over the coming weeks.
Analyzing the one-day price chart of SHIB, we observe significant obstacles for bulls to overcome. However, odds favor buyers, especially if Bitcoin (BTC) exhibits bullish behavior. The Fibonacci retracement levels highlight the $0.00000854 level as a critical support level, which SHIB has retested multiple times in recent months.
However, traders should remain cautious as SHIB may undergo a distribution phase due to increased selling pressure. It remains uncertain whether this selling pressure will offset recent gains made by SHIB. Nonetheless, the continued accumulation by large SHIB whales suggests a positive bias for the cryptocurrency in the medium to long term.
Conclusion
In conclusion, February presents both opportunities and challenges for SHIB traders. Technical analysis indicates a potential bullish trend if SHIB surpasses key resistance levels, while on-chain metrics suggest increased selling pressure in the short term. Traders should closely monitor price movements and market sentiment to capitalize on potential trading opportunities while exercising caution in light of market uncertainties.
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