SHIB May Be Eyeing a Breakout Above Key Resistance Level
Technical analysis revealed a potential rally towards $0.00001280 in the short term.
Shiba Inu (SHIB), the popular memecoin, has faced challenges in achieving significant price recovery following a persistent downtrend since early this year. At the time of writing, SHIB experienced a rise of 2.20%, as trader participation and Open Interest surged across the board.
Currently, Shiba Inu is trading at $0.00001255. Due to its high correlation with Bitcoin’s price movements and an increase in network adoption, there are speculations on SHIB’s ability to replicate Bitcoin’s recovery efforts.
SHIB’s Technical Setup – Indicator Analysis
Technical indicators for SHIB indicate bullish short-term momentum, although its long-term strength remains uncertain. SHIB is currently consolidating within a falling wedge pattern, suggesting a possible bullish trend reversal.
According to Crypto Sat on CoinMarketCap, a breakout above the $0.00001260 key resistance level could initiate a price uptrend, potentially driving SHIB’s price to $0.00001280 in the short term and $0.00001320 in the mid-term.
The 24-hour Relative Strength Index (RSI) for SHIB stood at 43 and increased to 51 on the 4-hour timeframe, indicating heightened buying pressure in the last 24 hours.
The memecoin’s MACD level and momentum suggest bullish momentum, while short-term moving averages indicate ‘buy’ signals. In contrast, long-term moving averages suggest ‘sell’ signals, highlighting existing bearish pressure indicated by a low long-short ratio of 0.87.
Is This a Bullish Reversal or Another Fakeout?
The memecoin market has been highly speculative lately, affecting even well-established coins like Shiba Inu. Several developments may be contributing to SHIB’s bullish short-term momentum.
For example, Shibarium, the layer-2 blockchain for Shiba Inu, is approaching a milestone of 10 million blocks. Additionally, the growing SHIB community anticipates the launch of SHIB OS, which aims to help enterprises and governments transition to decentralized governance models.
These developments may enhance and sustain SHIB’s bullish momentum in the mid-term.
Insights on Shiba Inu Holders
Data from IntoTheBlock indicates that 74% of SHIB is held by whales, with 60% of holders having retained their coins for over a year at a loss, hoping for a price rebound. The recent surge in large transactions is indicative of increased whale activity that might correlate with a price upsurge. Along with a 5.63% rise in Open Interest and a high correlation with Bitcoin, SHIB’s movements may follow Bitcoin’s recovery.
Key Levels to Monitor
If SHIB’s bullish momentum continues, a breakout could lead to a rally toward the $0.00001280-$0.00001320 resistance zone. Conversely, if bearish pressure continues, the $0.00001220 support level could be tested as price consolidation persists. Investors should keep an eye on whale activity and market developments alongside these key levels.
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