Shiba Inu [SHIB] is once again making headlines, as its recent breakout from a descending wedge pattern indicates the possibility of a bullish trend. Currently, SHIB is trading at $0.0000178, marking a 5.98% increase in the last 24 hours.
With this newfound momentum, many are speculating on whether SHIB can maintain its upward trajectory and potentially ignite a broader cryptocurrency market rally.
Analyzing Price Movements
The price of Shiba Inu has been testing key levels, showing indications of a potential reversal in its trend. The Bollinger Bands (BB) are now showing a tightening pattern, with SHIB trading near the upper band at $0.00001784 – a signal of heightened volatility and a possible breakout.
Moreover, the Relative Strength Index (RSI) currently stands at 65.36, suggesting that while SHIB might be nearing overbought conditions, there is still room for further upward movement. Sustaining a price above the midline could lead to continued bullish momentum.
On-Chain Activity for SHIB – Reflecting Growing Interest
A surge in price alone may not be sufficient to sustain a rally. Therefore, it is crucial to examine on-chain activity, and recent data for SHIB indicates positive signs. Over the past 24 hours, active addresses for SHIB have increased by 1.1%, reaching 267 according to CryptoQuant.
Furthermore, the transaction count has also risen by 1.1%, totaling 7.41k transactions. This uptick in both active addresses and transaction volume signifies a rising interest in SHIB, which bodes well for its long-term prospects.
Bullish Sentiment Prevails in SHIB Trading
When looking at the long/short ratio, it is evident that bullish sentiment dominates for SHIB. Currently, 55.62% of positions are long compared to 44.38% short, resulting in a long/short ratio of 1.2533. This indicates a strong belief among traders in SHIB’s upward trajectory.
This positive sentiment could further bolster SHIB’s price movement, especially if there is a continued increase in long positions being opened.
Liquidations – A Catalyst for Future Moves
An examination of liquidation data provides additional insights. In the last 24 hours, short liquidations for SHIB amounted to $267.64k, surpassing long liquidations which stood at $214.24k.
Consequently, short sellers are under mounting pressure, potentially leading to their exit from positions and driving SHIB’s price even higher.
Considering these factors, a sustained rally appears to be on the horizon for Shiba Inu. This could be further propelled if the broader cryptocurrency market, particularly Bitcoin, experiences a rally as well.
While market outcomes are never certain, the prevailing trend for SHIB hints at a positive outlook for continued growth in the immediate future.