Shiba Inu (SHIB) Eyes 50% Rally, Insights from On-Chain Data
Zameer Attar30 Oct 20242 min read
In the ongoing potential bull run, Shiba Inu (SHIB), the popular and the second-largest meme coin is about to end its consolidation and is poised for a massive upside rally. This bullish speculation arises from the coin’s positive price action and the continuous attention from investors and traders.
Shiba Inu Technical Analysis and Upcoming Levels
According to expert technical analysis, SHIB appears bullish following the breakout from a strong descending trendline, which it has been facing since March 2024. However, the breakout hasn’t been confirmed yet. Due to the bullish market sentiment and Bitcoin’s notable upside rally, SHIB appears bullish and could significantly rally in the coming days.
Based on recent price action and historical momentum, if SHIB closes a daily candle above the $0.000021 level, there is a strong possibility that the asset could soar by 50% to reach the $0.000029 level 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 will only hold if it closes a daily candle above the $0.000021 level, otherwise, it may fail.
Bullish On-chain Metrics
The meme coin’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SHIB’s Long/Short ratio currently stands at 1.03, indicating strong bullish sentiment among traders.
Additionally, its open interest has skyrocketed by 27% over the past 24 hours and 11% over the past four hours. This rising open interest suggests growing trader interest and the buildup of more positions compared to the previous day.
Traders and investors often consider rising open interest and a long/short ratio above 1 when building long positions.
Current Price Momentum
At press time, SHIB is trading near $0.0000188 and has experienced a price surge of over 6% in the past 24 hours. During the same period, its trading volume skyrocketed 125%, indicating heightened participation from traders and investors amid a potential upside rally.
