Shiba Inu is forming a falling wedge on the daily chart, aiming to use this pattern for a potential 50% price increase to the $0.000034 region. Crypto commentator and market analyst Dami DeFi recently highlighted Shiba Inu’s price movements, suggesting that the current bearish consolidation might set the stage for a significant push upward. Notably, SHIB is looking to continue the late February upswing.
Shiba Inu saw a 380% rise from February 25 to March 5, reaching a yearly high of $0.00004567. However, broader market turbulence and a loss of momentum caused SHIB to drop nearly 50% from its March 5 peak. According to Dami’s chart, this correction might be healthy for Shiba Inu. Interestingly, SHIB has formed a falling wedge during this drop. This pattern, characterized by two converging trendlines sloping downward, suggests a potential reversal in the current downtrend and a possible price breakout.
Shiba Inu Exchange Reserve Drops
As Shiba Inu sets up this pattern on the daily chart, there are signs that selling pressure could be slowing down. This is evident from the sustained increase in exchange outflows since May 5. Despite two daily inflows in the past two days, exchanges have seen an outflow of $8.88 million worth of SHIB since May 5.
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Additionally, on-chain data from CryptoQuant shows that Shiba Inu reserves on exchanges have dropped significantly since February 29. The data indicates that SHIB exchange reserves currently stand at 151.3 trillion, down from 164.5 trillion on February 29. This confirms that investors have withdrawn 13 trillion SHIB from exchanges since February 29.
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Moreover, investors have removed over 5 trillion SHIB from exchanges since March 31, despite the bearish trend. This decrease in exchange reserves suggests that market participants are moving their SHIB tokens to self-custodial solutions, possibly for long-term storage.
Targeting $0.000034
This practice reduces selling pressure and supports price action. Based on this, Dami expects Shiba Inu to see a significant price gain once it breaks out of the falling wedge. According to the analyst, the immediate target is a 50% surge, bringing SHIB to $0.00003456.
Currently, Shiba Inu is trading at $0.00002304, down 0.17% over the last 24 hours amid a broader market decline. SHIB’s derivatives data shows mixed signals, with a 26% drop in volume to $228 million and a slight 1.22% increase in open interest to $66.9 million. SHIB’s immediate goal is to break through the $0.00002350 mark to avoid steeper declines.
