• SHIB’s breakout highlights bullish momentum, with key support at $0.00001722

• Positive market sentiment and short liquidation could boost SHIB’s growth potential

Shiba Inu [SHIB] is making a splash once again, with its recent breakout from a descending wedge pattern indicating underlying bullish momentum. At press time, SHIB is trading at $0.0000178, following a 5.98% gain over the past 24 hours.

With this newfound momentum, many are wondering – can SHIB sustain this upward trend and potentially spark a broader cryptocurrency rally?

Price Action Analysis

The price of Shiba Inu has been testing key levels, showing signs of a possible trend reversal. The Bollinger Bands (BB) on the chart indicate tightening, with SHIB trading close to the upper band of $0.00001784 – a sign of increased volatility and a potential breakout.

Furthermore, the RSI is at 65.36 at press time. This suggests that while SHIB may be approaching overbought territory, there is still room for upside. If the memecoin’s price remains above the midline, the bullish momentum is likely to continue to build.

SHIB’s On-Chain Activity – A Sign of Growing Interest?

Price gains alone are not enough to drive a sustainable rally. Therefore, on-chain activity must be considered, and SHIB’s data shows some promising signs. For example, according to CryptoQuant, SHIB’s active addresses grew by 1.1% over the past 24 hours, reaching 267 at press time.

Additionally, the number of transactions also climbed by 1.1%, bringing the total number of transactions to 7.41k. The rise in active addresses and transaction volume indicates growing interest in SHIB — a positive indicator for its long-term prospects.

Bulls vs. Bears – Bullish Sentiment Dominates

Furthermore, analyzing SHIB’s long/short ratio reveals more bullish sentiment. At the time of writing, 55.62% of positions are long and only 44.38% are short. The long-short ratio is 1.2533, indicating that traders are largely betting on an uptrend in SHIB.

Therefore, this positive sentiment could further strengthen SHIB’s price action, especially if more traders continue to open long positions.

Liquidation – Can they provide the momentum for the next move?

Finally, examining the liquidation data adds another layer of insight. SHIB saw $267.64k of short liquidations in the last 24 hours, compared to $214.24k of long liquidations.

Therefore, this means that short sellers have been facing increasing pressure. This may force them to exit their positions and push up the price of SHIB.

Realistic or not, this is SHIB’s BTC market cap

Due to the above factors, the next step for Shiba Inu could be a sustained rally. If the broader crypto market, led by Bitcoin, also rises, this would accelerate the trend.

While there is no certainty in the market, general market trends for SHIB indicate good prospects for continued growth in the near future.

It should be emphasized that this article is for reference only and does not constitute investment advice.