- Shiba Inu’s bulls struggled to secure dominance in October, but it may turn out different this month
- SHIB might register a major uptick in the coming weeks
Shiba Inu’s performance in October was fairly decent, but it could be set for better tidings in November. In fact, at the time of writing, the memecoin appeared to be moving in a similar pattern as its bigger counterpart a few week ago.
Shiba Inu’s price action since May appeared to be forming a cup and handle pattern, one which bottomed out between August and September. This was an important observation because Dogecoin just completed October on the back of a strong uptick, completing the second half of the curve.
SHIB’s value appreciated considerably between September and October, with the memecoin recording much volatility over the period too. However, it’s worth noting that SHIB averaged gains of less than 3% from its October opening price to its closing price.
Source: TradingView
While October ended up being uneventful, the memecoin’s cup and handle pattern suggested that the bulls may show up strong in November. SHIB was trading at $0.0000175 at press time, but the curve will be complete if it soars to $0.000027.
This implied that a 56% upside is possible in the next 4 weeks.
Zooming in closer, while still on the 1-day chart, revealed that another pattern might be playing out here. Shiba Inu has been forming a wedge pattern and was rapidly approaching the breakout or breakdown zone. This may explain why it struggled to soar higher in October.
Source: TradingView
A pattern break will occur no later than mid-November, at which point the price will likely resume its broader cup and handle pattern. If this plays out, then that means accumulation may start building up in the next 2 weeks.
Is Shiba Inu experiencing accumulation at lower prices?
On-chain data revealed that whale activity has been on the rise in the last 4 weeks. Whale balances grew from 590 trillion SHIB towards the end of September to 591.01 trillion SHIB by end of October.
Source: IntoTheBlock
Investor balances had a negative outcome during the same period. Their balances dipped from 130.76 trillion SHIB to 129.4 trillion SHIB during the last 4 weeks. Retail holdings also dropped from 262.99 trillion coins to 262.88 trillion coins.
Finally, exchange data revealed that Shiba Inu inflows were more dominant over the last 4 weeks. This aligned with the price action’s struggle to achieve a significant rally.
Source: CryptoQuant
A bullish outcome will be characterized by more outflows rather than inflows. As well as strong growth in addresses held by different classes, particularly the whales.
