October has not been as positive as expected for cryptocurrencies. Bitcoin and other altcoins have experienced volatile prices due to market fluctuations. With only a few days left in the month, Shiba Inu aims for a strong breakout as Bitcoin holds above $70,000. This bullish analysis is supported by several on-chain metrics that recently turned positive.
SHIB is more confident thanks to optimistic on-chain metrics.
In the past few hours, the price of SHIB has surged under buying pressure as this meme coin surpassed immediate resistance levels. Data from Coinglass shows that Shiba Inu has seen total liquidations of nearly $1.04 million, with sellers liquidating approximately $720,000 in short positions.
Theo Shibburn, the daily coin burn rate of SHIB has skyrocketed by 436%. Over the past 24 hours, a total of 52,341,966 SHIB has been transferred to inaccessible blockchain addresses.
Additionally, there are some positive news related to the SHIB ecosystem. Lucie, the marketing director of Shiba Inu, tweeted about the upcoming "strategic upgrade" for Shibarium NFT holders.
She mentioned that Shiboshi NFT holders can expect new features, roles, and enhanced utility, increasing value and interaction with the ecosystem. This includes exclusive events and rewards that provide opportunities for monetization and community connection. This encouraging news could boost buying interest in SHIB, driven by expectations of potential short selling.
According to data from the on-chain platform IntoTheBlock, there has been a significant increase in several key metrics. Notably, the trading volume for Shiba Inu surged from $15.4 million to $68 million. However, the volatility of SHIB has significantly decreased, indicating lower potential for large price fluctuations. The volatility index has dropped from a high of 114% to 78%.
What will the price of SHIB be next?
Shiba Inu has surpassed EMA trend lines, heading to challenge the resistance level of $0.00002. However, bears are strongly defending against further price increases. As of the time of writing, SHIB is trading at $0.0000195, up more than 2.5% over the past 24 hours.
The upward trend of the moving average and RSI near 70 indicates a potential breakout. If this happens, the SHIB/USDT pair could accelerate towards the target of $0.000028.
Conversely, if the price drops from the current level and falls below the 20-day EMA line, this could indicate that the bullish momentum is waning in the short term. This could cause the pair to drop to the 50-day SMA line and maintain a range from $0.000012 to $0.000020 for a while.
This pair is gradually rising in a channel pattern. The lower trend line of this channel is crucial; breaking this line will indicate that bears are gaining dominance.
If the price recovers from the current position, this implies interest in buying during the dip. Buyers will aim to push the price to the resistance line of the channel, where sellers may resist. A breakout and close above this channel will signal a bullish takeover, potentially lifting the pair to $0.000022.