Breakouts From Litecoin And Shiba Inu May Imply A Short-Term Trend Change

    • Litecoin cements its position above $100 ahead of another quick swipe to $112.
    • Whale activity comes back to light as LTC prepares to shake off dominant overhead pressure.
    • Shiba Inu is still considering a 74.75% move to $0.000042.

    Litecoin and Shiba Inu joined other cryptocurrencies in recording considerable moves as a reaction to the expected interest rate hike. LTC affirmed its position above $100 as analyzed on Wednesday by rising to $0.7. SHIB, on the other hand, embraced the double-bottom support at $0.000019 before a minor breakout to $0.000022.

    Are Litecoin Whales Back?

    Large volume investor activity remained relatively dormant in the last three months, according to on-chain data from Santiment. However, a sharp spike in the holdings of addresses with a balance between 1 million and 10 million on May 2 shows the whales may have woken up.

    As observed from the chart (below), this cohort of addresses currently holds 13.94% of the total circulating supply, up from 12.32% recorded on April 30. This increase in buying activity cannot be ignored, because if it continues, Litecoin’s price is likely to keep the uptrend in place.

    Litecoin Supply Distribution By Balance Of Addresses

    Litecoin, Shiba Inu Breakout May Imply A Short-term Trend Change
    Santiment chart

    Meanwhile, Litecoin changed hands at $105 at the time of writing. April’s descending channel was still in place with the upper boundary still frustrating the buyers. Higher support remains crucial for the uptrend’s continuation. Besides, the upward moving Stochastic RSI suggested that bulls were in control.

    The Moving Average Convergence Divergence (MACD) might keep the odds in favor of Litecoin’s price recovery if a buy signal on the daily chart is confirmed in the short term. LTC was also required to break free above the channel to avoid early profit-taking by investors. Litecoin might possibly climb above the confluence resistance created by the 50-day Simple Moving Average (SMA) and the 100 SMA around $112.

    LTC/USD Daily Chart

    Litecoin, Shiba Inu Breakout May Imply A Short-term Trend Change
    Tradingview chart: LTC/USD

    Shiba Inu Still Has Room For Growth

    Following the rebound from the double-bottom pattern drawn in the daily chart (below), SHIB slowed down after tagging $0.000022. The delay may have been a result of little accumulation at the support before the breakout occurred.

    If the buyer congestion at $0.000019 remains intact in the short-term, the token may embrace a period of consolidation ahead of another push for the double-bottom pattern’s 74.75% target to $0.000042.

    SHIB/USD Daily Chart

    Litecoin, Shiba Inu Breakout May Imply A Short-term Trend Change
    Tradingview chart: SHIB/USD

    To start the uptrend, a buy signal is required to emanate from the MACD. Traders should be on the lookout for the 12 EMA crossover above the 26 EMA, in addition to the general MACD’s movement towards the mean line and into the positive territory.

    It is worth mentioning the expected hurdles at $0.000022 and the confluence created by the 50 SMA and the 100 SMA at around $0.0000245. Following a successful lift above these two barriers, Shiba Inu’s price may then take off to $0.000042.

    John Isige
    John is a cryptocurrency technical analyst, who looks at micro, macro and fundamental factors affecting market trends.

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