As the potential bull run continues, Shiba Inu (SHIB), the well-known and second-largest meme coin, is on the verge of ending its consolidation phase and gearing up for a substantial upward rally. This optimistic speculation stems from the coin’s positive price movements and the sustained interest from investors and traders.
Shiba Inu Technical Analysis and Future Levels
Expert technical analysis suggests that SHIB is showing bullish signs after breaking out from a strong descending trendline that has been in place since March 2024. However, the breakout has not been confirmed yet. With the bullish market sentiment and Bitcoin’s notable upward trend, SHIB appears poised for a significant rally in the days ahead.
Based on recent price movements and historical momentum, a daily candle closing above the $0.000021 level could potentially propel SHIB by 50% to reach the $0.000029 level in the near future.
Moreover, the meme coin is currently trading above the 200-day Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend. The 200 EMA is a key technical indicator used by traders and investors to determine the direction of an asset’s trend.
The bullish scenario for SHIB will only remain valid if it manages to close a daily candle above the $0.000021 level; otherwise, the rally may falter.
Bullish On-chain Metrics
The positive outlook for the meme coin is further supported by on-chain metrics. According to the on-chain analytics platform Coinglass, SHIB’s Long/Short ratio currently stands at 1.03, indicating strong bullish sentiment among traders.
Furthermore, the open interest for SHIB has surged by 27% in the past 24 hours and 11% in the last four hours. This increase in open interest suggests a growing interest from traders and the accumulation of more positions compared to the previous day.
Traders and investors often view a rising open interest and a long/short ratio above 1 as indicators to establish long positions.
Current Price Momentum
Currently, SHIB is trading around $0.0000188 and has seen a price surge of over 6% in the past 24 hours. Simultaneously, its trading volume has increased by 125%, indicating heightened engagement from traders and investors amidst the potential rally.
