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According to popular cryptocurrency analyst Ali Martinez, Shiba Inu (SHIB) may be ready for a 20% rally. In his statements on the subject, Ali Martinez listed the reasons for his thesis. The analyst shared a 4-hour SHIB/USD chart in his post, showing that the token is in a descending channel.
Technical Indicators in SHIB
A descending channel emerges when two downward trend lines are drawn above and below a price. In this case, the upper trend line represents resistance, while the lower trend line represents the support level. The expert observed that Shiba Inu has formed lower highs and lower lows along five trend lines, confirming the bias that a breakout might be near.
At the time of writing, the meme token is trading at $0.0000236, up 7.42% in the last 24 hours. This increase might suggest that SHIB has started its upward journey. If this formation continues, SHIB could reach $0.00002954 within a few days. Additionally, on-chain analysis using the market value to realized value (MVRV) ratio suggested that this view might be valid. The MVRV ratio metric measures profitability and can indicate whether a cryptocurrency is undervalued.
Short-Term Forecast for Shiba Inu
Shiba Inu’s 30-day MVRV ratio was -1.239%. This means that holders who bought the token would incur this average loss if they sold at the current price. Therefore, the downward momentum in SHIB might continue. However, if the ratio approaches the positive region, the price could increase, confirming the bullish thesis.
The increase in exchange supply indicates that investors are holding Shiba Inu in the short term. A decrease means an increase in the HODL decision. For the supply outside exchanges, the situation could be the opposite. At the time of writing, SHIB’s supply on exchanges had fallen to 74.7 trillion. On the other hand, the supply outside exchanges had risen to 927.17 trillion. The difference in metrics might indicate that most of the meme token’s holders believe in its long-term potential. Therefore, the cryptocurrency might not experience significant selling pressure in the short term.
