Shiba Inu price shows early signs of a double top

Shiba Inu (SHIB) price has hit a 50-day high, trading at $0.00000126 amid the meme token frenzy to continue to dominate the market.

Elon Musk is making waves in the crypto market as meme tokens are ruling Twitter, with Dogecoin-killer Shiba Inu seeing a rise in price. As of press time, the Shiba Inu price is up almost 53% from the local high of $0.00000126 in less than 14 days.

shiba inu price rise

There are frequent signs of a rise in the price of the Shiba Inu. A look at the SHIB 1-day price chart shows that it has been in an uptrend for almost 12 days. On the weekly chart, Shiba Inu price was up 20.73%.

SHIB/USDT 1-Day |  Source: TradingView
SHIB/USDT 1-Day | Source: TradingView

While the SHIB daily RSI was still hovering in the overbought zone, there were some signs of weakening of the recent rally as trading volumes calmed down.

At press time, SHIB was trading at $0.00001205, close to a 9.95% daily loss.

The recent rally made a remarkable difference to the entire trajectory of SHIB. According to data from IntoTheBlock, SHIB holders saw an increase of 53.58% over the past 30 days, which presents a strong holder base for the Mem token.

The holder base of SHIB increased while that of Cruiser saw a decline of 22.16% in the last 30 days. This may suggest that short-term holders are holding their investments for a longer period and are gradually becoming part of the so-called “diamond hands”.

Source: IntoTheBlock
Source: IntoTheBlock

This can also be seen in network activity as there has been an 80% increase in new SHIB addresses in the last 7 days. The number of new SHIB addresses saw a significant increase on 29 October when the SHIB price saw a local top.

On 29 October new addresses increased to 3,200, while active addresses reached 11,000.

Although the number of new SHIB addresses decreased by 15% from the October 29 level, it registered an increase of 80% on a week-on-week basis.

shiba inu price
Source: IntoTheBlock

7-day active address change also increased by 62.84%. So, since participants still flock to SHIB despite price action weakening, where will the SHIB price go from here?

SHIB Price Prediction: Signs of a Double Top?

Shiba Inu price recently made a local top at $0.00001519, after which it started trading lower lows while trading in the green.

Notably, the SHIB price was losing momentum at press time, losing over 9%. According to merchant And analyst Altcoin Sherpa, Shiba Inu price may form a double top pattern in November, leading to another local top near $0.00001519.

Shiba Inu Price Source: Twitter
Source: Twitter

From an on-chain perspective, looking at the SHIB Edge Consumed metric, this presented some discrepancies as more than 3 trillion tokens were transferred on November 2. The move of older tokens could be one of the reasons behind the short-term price pullback of SHIB.

SHIB on series activity.  Source: SanBase
Source: SanBase

Still, with Elon Musk pointing out his support for the meme token on Twitter, the same Dogecoin and Shiba Inu could help steer the boat. Recently, Musk tweeted a Twitter T-shirt wearing a Shiba Inu breed dog, which fueled the speculation.

Between the hype and social attention that may have seen meme coins coinciding with Musk’s hints at Dogecoin payments on Twitter, the Shiba Inu could grow together. If so, the next bullish target for SHIB price should be $0.0000014, which also acts as a strong resistance as more than 6,560 addresses hold more than 796 billion coins.

Shiba Inu Price Source: IntoTheBlock
Source: IntoTheBlock

In case of further bearishness, the $0.0000011 mark could act as the next strong support for the Shiba Inu as there are over 31,380 addresses with over 18 trillion tokens purchased at this price level.

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