- Shib acted at the support level of a bullish pattern and was in line with the expected technical support movement.
- The performance of the Memecoin in the past week may limit its upward move.
Despite staying on a bullish territory, Shiba Inu [SHIB] Last week fell by 11.88%. Analysis suggests that this deterioration can come to a halt as several bullish confluences come to the surface.
In particular, the liquidity inflow is gradually increasing, and with a supportive bullish pattern it shows active potential for an upward movement.
Bullish pattern – How will it take place for Shib?
The continuous decline of Shib has brought it to the support level of a bullish triangular pattern.
This bullish triangle has the price movement that is limited within a falling resistance line and a horizontal support level.
Source: TradingView
Usually, after a longer period of consolidation, assets break from such patterns through the resistance line. In the case of Shib, a breakout can result in a rally of 39%, which means that the price is printed to $ 0.00001765.
Shib, however, must break the resistance level with at least one confirmed candle above it to validate the next target target.
More Bullish Confluences comes on the surface
Market indicators suggest that Shib has a higher potential to collect, based on technical statistics such as the Bollinger tires and the Money Flow Index.
The Bollinger tires (BB), which help to gauge or an active overbought or over -striking, indicate a possible rally. At the time of writing, Shib acted near the lower tire, which signaled over sold -out circumstances – often a precursor to the buyer’s interest.
This lower BB band also corresponds to the key support level that is shown on the graph, which adds further credibility to the pattern.
Source: TradingView
Support for the case for a potential rally is the increasing liquidity inflow in Shib. At the time of the press, the Money Flow Index (MFI) was 35.67 and trending up.
If this upward trend continues – especially if the MFI crosses over 50 – this would indicate a strong liquidity inflow in the active, which Bullish Momentum indicates.
Yet the question remains: are the bulls fully committed to Shib, or is this just a temporary performance?
Are bulls completely on the market?
Analysis of the wider memecoin market suggests that Bullish Impuls has not yet been fully established, because the sector continues to show weakness.
Data from Artemis shows that memecoins have performed behind him in the last seven days and have fallen by 15.2%. This decline places the sector among the lower four artists in all ecosystems.
This decrease in the lower quartile suggests a liquidity outflow of the wider Memecoin market.
Source: Artemis
Although this performance statistics represents a weighted average and does not immediately determine the liquidity inflow of Shiba Inu, it still offers valuable insight.
If the Memecoin sector starts recovering and leaving this negative zone, this may indicate an efficiency of the total liquidity – possibly attract more capital to Shib.