Shiba Inu holders surge 50% as bullish reversal looms

The Shiba Inu (SHIB) community has experienced a significant surge in its user base, with the number of unique addresses holding SHIB reaching 1.5 million. This growth in holders indicates a broader distribution of the meme coin, which is crucial for strengthening network effects, supporting decentralized projects, and enhancing liquidity. The increasing number of SHIB holders has also fueled bullish sentiment within the community.

Market analyst Crypto Sat has noted that SHIB is exhibiting a bullish reversal signal on its daily chart. After weeks of consistent lower highs and lower lows, the price action has compressed into a classic falling wedge pattern. This pattern is often associated with breakouts, suggesting a potential upside run for the second-largest meme coin by market capitalization. According to the analyst, if SHIB follows historical trends, falling wedges typically lead to solid upward movements.

For SHIB to confirm this bullish reversal, it must hold the critical support level of $0.000012. A breakout confirmation above $0.000013 would be the key indicator of a successful reversal. At the time of writing, SHIB was trading around the $0.00001218 zone, indicating that it is close to hitting the breakout point. The presence of higher lows, where the lowest point of a pullback is higher than the previous low, further supports the potential for an uptrend.

A higher low, combined with a higher high, signals an uptrend. This technical pattern suggests that SHIB is poised for a potential price increase, which could trigger further chaos in the market. The growing number of SHIB holders and the bullish technical indicators point to a positive outlook for the meme coin, as the community continues to bet on the critical price level of $0.000013 to confirm the reversal.