In a potential bull run that is underway, Shiba Inu (SHIB), the second largest and most popular meme coin, is coming out of consolidation and preparing for a strong rally. This bullish speculation stems from the coin’s positive price action and continued attention from investors and traders.
Shiba Inu Technical Analysis and Upcoming Levels
According to the expert’s technical analysis, SHIB looks bullish after breaking out of a strong downtrend line that it has been facing since March 2024. However, the breakout is yet to be confirmed. Given the bullish market sentiment and Bitcoin’s remarkable rally, SHIB looks bullish and could see a significant increase in the coming days.
Based on recent price action and historical momentum, if SHIB closes the daily candle above $0.000021, there is a strong possibility that the asset will surge 50% to $0.000029 in the coming days.
However, the meme coin is trading above the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend. The 200 EMA is a technical indicator that traders and investors use to determine whether an asset is in an uptrend or downtrend.
SHIB's bullish thesis can only be correct if the daily candle closes above $0.000021, otherwise, this thesis may fail.
On-chain Index Bullish
The meme coin's positive outlook is further supported by on-chain metrics. According to on-chain analytics firm Coinglass, SHIB's Long/Short ratio is currently at 1.03, indicating strong bullish sentiment among traders.
Additionally, its open interest has spiked 27% in the last 24 hours and 11% in the last four hours. This increase in open interest shows increasing trader interest and the accumulation of more positions than the previous day.
Traders and investors often consider increasing open interest and long/short ratios above 1 when building long positions.
Current price momentum
At press time, SHIB was trading at nearly $0.0000188 and had experienced a price increase of more than 6% over the past 24 hours. During the same period, its trading volume spiked by 125%, indicating increased participation from traders and investors amid a potential price increase.
