- SHIB may be eyeing a breakout above its $0.00001260 key resistance level
- Technical analysis revealed a potential rally towards $ 0.00001280 in the short term
Popular memecoin Shiba Inu has struggled to record any significant price recovery following a sustained downtrend since the start of the year. However, at the time of writing, SHIB saw its price rise by 2.20% as trader participation and Open Interest surged across the board.
At the time of writing, Shiba Inu was trading at $0.00001255. Thanks to a high correlation to Bitcoin’s price movement and the anticipated hike in network adoption, can SHIB mimic Bitcoin’s recovery efforts?
SHIB’s technical setup – What do the indicators tell us?
SHIB’s technical indicators revealed a bullish momentum in the short term, while the memecoin’s long-term strength remains in question. At the time of writing, SHIB was consolidating inside a falling wedge pattern, indicative of a potential bullish trend reversal.
According to Crypto Sat on CoinMarketCap, a breakout above the $0.00001260 key resistance level on its descending trendline could trigger a price uptrend. SHIB’s price could rally towards $0.00001280 in the short term, while eyeing $ 0.00001320 in the mid-term.
Source: CoinMarketCap
SHIB’s 24-hour Relative Strength Index (RSI) stood at 43 and rose to 51 on the 4-hour timeframe too. This seemed to be indicative of heightened buying pressure in the last 24 hours.
The memecoin’s MACD level (12,26) and momentum highlighted bullish momentum. Similarly, the short-term and long-term moving averages flashed ‘buy’ at press time. On the contrary, the long-term moving averages signaled ‘sell’ – A sign of existing bearish pressure evident from a low long-short ratio (0.87).
Could this be a bullish reversal or another fakeout?
The memecoin market has been extremely speculative lately, without sparing even established meme oins such as Shiba Inu. Several market developments could be fuelling SHIB’s bullish short-term momentum.
For instance, Shibarium, the memecoin’s layer-2 blockchain, is on the verge of a 10 million block milestone. According to Shiba Inu team member Lucie on X (formerly Twitter), the growing SHIB community is also anticipating SHIB OS.
The OS is a solution for enterprises and governments transitioning to secure decentralized governance models and real-world blockchain utility. Thanks to these and other market developments, SHIB’s bullish momentum could strengthen and sustain an uptrend in the mid-term.
Shiba Inu’s holder insights
74% of SHIB is controlled by whales, as per IntoTheBlock data. Most of the holders (60%) have held for more than a year at losses, hoping for a price rebound.
The surge in large transactions over the past week. alongside market developments, may be indicative of greater whale activity associated with a price upsurge. With a rising Open Interest(+5.63%) and a high Bitcoin correlation, SHIB’s movement could follow BTC’s price recovery.
Source: IntoTheBlock
Key levels to watch out for
If SHIB’s bullish momentum is sustained, a breakout could rally towards the $0.00001280-$0.00001320 key resistance zone.
Conversely, if the bears pull further, the $0.00001220 support could be tested as price consolidation continues. One should watch for whale activity and market developments alongside these key levels.
