The meme-inspired cryptocurrency Shiba Inu ($SHIB) has lost around 23% of its value over the past month, despite surging more than 270% over the past 6-month period amid a wider cryptocurrency market surge. The cryptocurrency’s community, however, has helped it maintain strong social activity.
According to a post shared in the microblogging platform X (formerly known as Twitter) by social intelligence firm Lunar Crush, SHIB is “signaling bullish” as it has been seeing increasing social activity paired with accelerating market volume and rising price action.
As CryptoGlobe reported, the meme-inspired cryptocurrency could, according to an analyst, surge in the near future based on technical analysis, as the analyst suggested its chart shows a symmetrical triangle pattern, often interpreted by traders as a bullish signal.
A symmetrical triangle pattern is formed by drawing trendlines, one falling and another one rising, along a converging price range. To confirm a valid break and not a false one, traders should look for a surge in volume and at least two consecutive closes beyond the trendline, according to Investopedia.
Symmetrical triangles usually indicate that the price will continue in the same direction as before the triangle formed. Therefore, traders would expect the price to break upward if a symmetrical triangle follows an uptrend.
Notably, last month, Shiba Inu’s layer-2 scaling solution, Shibarium, started hitting new milestones. The network topped the 400 million transaction mark earlier this week as SHIB’s adoption grows. Shibarium hit the 300 million transaction mark back in January of this year.
The SHIB ecosystem has shown it’s buzzing with activity, with on-chain data revealing that the daily active addresses for the SHIB token have skyrocketed since March began, far exceeding February’s levels. This metric peaked at a staggering 21,000 this week, nearly 20 times the daily average seen last month, seeing a surge of nearly 2,000%.
Featured image via Unsplash.
Featured image via Unsplash.
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