Shiba Inu [SHIB], the second most prominent meme cryptocurrency based on market capitalization, is generating interest in the digital currency realm due to its positive price movement.
Furthermore, the current market sentiment seems to favor the meme crypto, especially as Bitcoin [BTC] approaches its all-time high.
Analysis of Shiba Inu’s Technical Aspects and Crucial Levels
As per technical analysis from CryptoCrypto, SHIB is exhibiting a bullish trend, poised to break free from a significant descending trendline that has kept its price in check since March 2024.
Moreover, besides this trendline breakthrough, SHIB has also displayed a bullish inverted head-and-shoulders pattern on the weekly timeframe, with the completion of its second shoulder on the horizon.
If SHIB successfully breaks out of this pattern and manages to close a daily or weekly candle above the $0.000019 or $0.000021 thresholds, there is a strong likelihood of a 40% surge, propelling it to the $0.000030 mark in the near future.
Positive On-Chain Indicators for SHIB
Supporting the favorable outlook for SHIB are encouraging on-chain metrics. According to analytics provided by Coinglass, SHIB’s Long/Short Ratio across various timeframes stands at 1.637, signaling a prevailing bullish sentiment among traders.
Additionally, the Open Interest (OI) for SHIB surged by 17% in the last 24 hours and displayed a continuous uptrend.
This increasing OI indicates growing confidence from traders in the potential of the meme coin, with a rising inclination towards long positions.
At the current moment, 62.08% of prominent traders are holding long positions, while 37.92% are holding short positions.
Trader Sentiment and Recent Price Momentum
Traders and investors typically take note of rising Open Interest and a Long Short Ratio above one as signals to establish long positions.
With the combination of optimistic on-chain metrics and technical analysis, the prevailing indication is that the bulls are currently dominating, with a breakout anticipated shortly.
Currently, SHIB is trading around $0.0000182 after experiencing a price uptick of more than 7.85% in the past day.
During this period, its trading volume surged by a notable 190%, underscoring heightened involvement from traders and investors amidst a growing positive market sentiment.