Shiba Inu Shows Breakout Potential Days After Golden Cross

Shiba Inu price action moved in a ranging pattern since the start of July, indicating a lack of directional momentum.

Despite that, it still managed to achieve a golden cross, which is traditionally a sign of a bullish trend.

Shiba Inu pushed higher in the last 24 hours, showing signs of a momentum build-up. The memecoin was mostly stuck in a sideways pattern in the first week of July.

The meme coin’s 50-day moving average still managed to push above its 200-day moving average despite the stalemate between the bulls and bears.

The bulls seemed to be winning the battle courtesy of a more than 4% rally in the last 24 hours, which pushed Shiba Inu out of its narrow range.

Shiba Inu on the Verge of Major Pattern Breakout

The bullish performance signaled that SHIB was finally building enough momentum to fuel a recovery rally. The meme coin traded in a wedge pattern underpinned by long-term support and a descending resistance.

The momentum build-up in the last 24 hours resulted in a push above the descending resistance, validating the prospects of a bullish recovery. Moreover, the price was already within the narrow edge of the wedge pattern.

The last time Shiba Inu achieved a strong bounce from the aforementioned support level, it pulled off a 67% rally. SHIB previously bounced by over 200% upside from the same support level in August last year.

Shiba Inu was massively drawn down by over 60% from its December 2024 top. Even more so from its historic top. Despite that, it still maintained a healthy position among the top meme coins.

SHIB was uniquely positioned to secure a breakout based on the breakout potential and its heavy discounted nature.

The return of bullish momentum also aligned with the surge in demand for altcoins as Bitcoin dominance cooled down.

Can Shiba Inu Sustain the Momentum Amid Weak Whale Activity?

Although Shiba Inu price action demonstrated a demand surge, the attempted rally’s legitimacy was called into question. This was particularly due to the absence of robust whale activity.

Whale orderbook flows on Coinglass since the start of the week revealed weak spot demand across Binance, Coinbase, and OKX.

Lack of aggressive whale accumulation could signal that the mid-week bounce was mostly driven by retail activity.

Moreover, SHIB exchange reserves recently showed signs of a pivot. The memecoin previously experienced significant exchange outflows in June, which was consistent with accumulation.

However, the exchange reserves ticked up considerably since the start of July, which was in line with potential sell pressure from whales.

While the surge in exchange reserves was not consistent with prevailing demand, it highlighted short-term sell pressure risks.

The lack of robust whale activity further added to the probability that the latest rally attempt could be short lived.

On the other hand, the lack of whale excitement may have been because whales already got in earlier. According to Sentora’s latest data, whales were the majority holders of SHIB at 74%.

Strong whale holdings could potentially allow SHIB to achieve a strong recovery once robust altcoin season makes a comeback.

However, the fact that whale activity remained weak in the last few days could signal weak demand in the short run.

Analysts also noted that the latest rally attempt occurred just weeks before the return of economic uncertainty and disruption.

This particular factor may undercut the latest bullish momentum and potentially lead to a sizable pullback, as was the case in Q1 2025.