- SHIB’s breakout underlined bullish momentum, with key support at $0.00001722
Positive market sentiment and short liquidations could spur SHIB’s growth potential
As a seasoned crypto investor with battle scars from the 2017 bull run and the infamous 2020 crash, I have learned to read between the lines when it comes to market trends and price action. And let me tell you, Shiba Inu [SHIB] is showing some promising signs that could indicate a sustainable rally in the making.
Shiba Inu Coin (SHIB) is making headlines again as it surges after breaking out of a falling wedge pattern, suggesting a possible rise in positive price action. As I write this, SHIB is being traded at approximately $0.0000178, reflecting a 5.98% increase over the past day.
Due to the recent surge, there’s a lot of curiosity – Will Shiba Inu continue its upward trend and potentially ignite a larger cryptocurrency market surge?
Price action analysis
The price of Shiba Inu is approaching significant thresholds, hinting at a potential shift in trend direction. The Bollinger Bands on its chart are narrowing, implying that SHIB is currently trading close to the upper band at approximately $0.00001784 – suggesting heightened volatility and a likely breach of this level.
Moreover, at the present moment, the Relative Strength Index (RSI) stood at 65.36. This implies that although Shiba Inu (SHIB) might be nearing overbought levels, there’s still potential for further price increases. If SHIB manages to stay above the average line, it could signal the continued growth of bullish momentum.
SHIB’s on-chain activity – A sign of growing interest?
An increase in price by itself may not sustain a lasting surge, so it’s crucial to examine on-chain activity as well. In the case of SHIB, recent data indicates some positive trends. For example, over the past 24 hours, the number of active addresses for SHIB has increased by 1.1%, reaching 267 at this moment, as reported by CryptoQuant.
Moreover, the number of transactions increased by 1.1%, reaching a total of 7,410. This rise in both active addresses and transaction volume suggests a rising curiosity about SHIB, which could be a positive sign for its future potential.
Long vs. short – Bullish sentiment dominates
Furthermore, examining Shiba Inu’s long and short position ratio suggested a predominantly optimistic outlook. At the point of writing, about 55.62% of positions were bullish, while just 44.38% were bearish. This ratio stood at 1.2533, suggesting that most traders have been wagering on Shiba Inu’s uptrend, implying a greater number betting on its price rise compared to those betting on its decline.
Consequently, such optimistic feelings might boost SHIB‘s price trend even more. Particularly, if more investors decide to take on long positions.
Liquidations – Can they fuel the next move?
Ultimately, analyzing liquidation figures offers an additional perspective. In the past 24 hours, Shiba Inu (SHIB) recorded $267,640 in short liquidations versus $214,240 in long liquidations.
Therefore, the situation implies that short sellers are under growing tension, potentially causing them to leave their investments. This could further escalate the price of SHIB.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
Due to the points mentioned earlier, it’s possible that Shiba Inu might continue to rise significantly. If the overall crypto market, particularly Bitcoin, also experiences a rally, this trend could gain even more momentum.
Despite the unpredictability of the market, Shiba Inu’s current market trend points towards a promising perspective for continued growth in the upcoming period.
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2024-10-06 06:15