At the time of writing, the crypto market is somewhat bullish as Bitcoin is up 4.5% over the past 24 hours. Accordingly, the prices of Altcoins returned to the green and increased even more. SHIB is a prime example with a daily gain of 5.6%.

Notably, SHIB is up more than 300% within a month of its launch, leading to a trading frenzy in early 2021 reminiscent of DOGE.

Originally a hoax token, the digital currency drew attention to the entry.

Additionally, due to the impressive stock performance, investors started allocating a percentage of their portfolio to SHIB. Actually a poll by Statista revealed that Most US and UK users invest in cryptocurrency for development or entertainment. And SHIB may be seen by many as a relatively easy “quick win” investment.

Without a doubt, this token has brought unexpected benefits to traders – an increase of 365,600% in one year.

What should traders do?

Aside from the success of SHIB, the important question now is what traders will get. Exactly a short-term profit opportunity. What is interesting is that the price could consolidate in the downside channel according to the chart below. It’s basically a bull flag.

To break the 2-month resistance, SHIB needs to reconfirm the short-term resistance at $0.00003505 as support and then move higher. In this case, traders can opt for a long position in the current price zone.

SHIB sellers in particular dominated the market for the first week of February, but demand picked up after the 7th to allow for a short-term rally. On the downside, the bulls are offering multi-month support at $0.00001989. Strangely, the RSI is at 48, not on their side. However, the trend exhaustion indicator suggests that the bull run will continue for some time.

Source: TradingView

Short or not?

At the time of writing, there appears to be a balance between sellers shorting the SHIB and short sellers liquidating their positions. It simply means that sellers are now holding the coin in a very fragile range of $0.00002787 and $0.00002952. From a macro perspective, the positive momentum translates into some impressive gains for SHIB.

However, although the increase was small, it led to liquidation and caused the SHIB market to fluctuate wildly. All of this means that SHIB’s short side is becoming more and more liquidated. This drives the price up, similar to shorting the stock market.

Hence, analysts expect a bullish outlook for this coin meme. Also, on-chain indicators tell the same story. For example, on February 7th, the whale trade spiked. When these trades happen in batches, the price usually goes up.

Source: Santiment

The large number of whales owning the coin is always a bullish sign. Looking at SHIB stats, at the time of writing, 69.99% of the total circulating supply is in whale hands. This gives long-term price prediction signals that are certainly not looking bleak at the moment.

Source: IntoTheBlock

Given the historical concentration, it appears whales have been driving the SHIB rally for a long time. However, it should be noted that retail investors have already identified exit positions and will therefore take profits on SHIB declines.

Source: IntoTheBlock

Totally optimistic?

While the market appears poised for a rally over the next week, positive whale activity is worrying at the moment. At the time of writing, almost 41.73% of addresses show significant activity. However, it is not possible to determine whether their movement is a purchase or a sale.

Source: IntoTheBlock

Additionally, an increase in the total outflow of coins from an exchange is usually an optimistic sign. In this case, investors are showing HODL sentiment. However, for the SHIB, the outflow from the stock market has currently slowed after a brief rally in the first week of February. It is important for investors and traders to consider this metric before making any decision to open long positions.

Source: Santiment

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page