Shiba Inu [SHIB] experienced a significant rise on September 26th, achieving a 12% increase and continuing its upward trend for the month to 35%.
This impressive performance overshadowed that of Bitcoin [BTC], which only saw a 2% increase on daily charts and remained relatively stable.
Nevertheless, SHIB’s surge encountered a major obstacle, prompting the question: Can the bulls overcome this barrier and move ahead?
SHIB Facing a Decision Point
The stochastic RSI and RSI indicators showed bullish signs on the daily chart, highlighting a strong buying interest in SHIB over recent days.
However, they also indicated potential overbought conditions, which often foreshadow a potential trend reversal. Despite this, given the current bullish market setup, the uptrend momentum may persist.
If this scenario plays out, opportunistic bulls might consider re-entering the market after a breakout or retest beyond the resistance levels at $0.000001763 (highlighted in white) or $0.000018 (the low from April).
The target for the bullish movement would be the 200-day Moving Average (MA) at $0.000020, offering potential gains of 15% or 11% based on the entry positions.
However, a daily close below $0.000017 would invalidate the aforementioned bullish outlook, potentially leading SHIB to retreat to $0.000015 in a conservative scenario.
Investors in SHIB Embrace Risk
SHIB investors adopting a risk-on strategy further reinforced the prevailing bullish sentiment, highlighted by consistent net inflows for two consecutive days.
According to Coinglass data, Thursday witnessed net inflows of $9.1 million for SHIB. Market demand in the spot segment was strong on Wednesday, with a daily inflow of $4.7 million.
If the robust demand in the spot market continues, SHIB could see further upward movement.
A similar optimistic outlook was observed in the derivatives market, with Open Interest (OI) rates climbing by 26% and more short positions being liquidated compared to long positions.
This trend indicated that Futures market speculators anticipated further price growth for SHIB.
However, any sudden reversal in Bitcoin’s recent gains could impede SHIB’s upward trajectory and challenge the bullish forecast.
Disclaimer: This content does not offer financial, investment, trading, or any form of advice and represents solely the writer’s perspective.