Shiba Inu ($SHIB), a meme-inspired cryptocurrency, has dropped roughly 23% of its value in the last month, having rising more than 270% during the previous six months amid a broader cryptocurrency market spike. However, the cryptocurrency's community has contributed to its high level of social activity.
According to CryptoGlobe, the meme-inspired cryptocurrency could soar in the near future based on technical analysis, since the chart reveals a symmetrical triangular formation, which traders frequently take as a positive indicator.
A symmetrical triangular pattern is generated by drawing two trendlines, one dropping and one rising, across a converging price range. According to Investopedia, to validate a legitimate break rather than a fraudulent one, traders should look for an increase in volume and at least two consecutive closes beyond the trendline.
Symmetrical triangles typically signal that the price will move in the same direction as before the triangle formed. As a result, traders would expect the price to break upward if a symmetrical triangle forms after an advance.
Notably, Shiba Inu's layer-2 scaling solution, Shibarium, began to achieve new milestones last month. The network surpassed the 400 million transaction mark earlier this week as SHIB adoption increased. Shibarium reached the 300 million transaction threshold in January of this year.
The SHIB ecosystem has been buzzing with activity, with on-chain data revealing that the daily active addresses for the SHIB coin have surged since March began, considerably above February levels. This statistic reached at a stunning 21,000 this week, about 20 times the daily average from last month, representing a roughly 2,000 percent increase.
April 2024, Cryptoniteuae