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As Bitcoin rebounds from a brief dip below $90,000, the crypto market appears to be in recovery mode, with meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) showing early signs of a potential turnaround. Bitcoin’s climb back to the $95,000 mark has sparked optimism, and Shiba Inu’s performance suggests it may be poised for a breakout rally.
Over the last 24 hours, Shiba Inu’s price has risen by 4%, maintaining dominance above the psychological $0.000020 mark. The meme coin continues to hold a market capitalization of $12.56 billion, and its price action is fueling expectations for further gains.
Shiba Inu Price Analysis
On the daily chart, Shiba Inu’s price trend shows bullish momentum, currently trading at $0.00002146, above the 38.20% Fibonacci level at $0.00002085. However, there are signs of a possible head and shoulders pattern forming, with the 38.20% Fibonacci level acting as the neckline. If SHIB closes below this critical level, it could signal a significant correction for the altcoin.
Looking at the 4-hour chart, Shiba Inu is encountering a local resistance trendline, which may limit short-term bullish growth. The $0.000020 psychological level has also served as a key support, facilitating a V-shaped reversal. Additionally, the 4-hour RSI line shows a bullish divergence, which increases the likelihood of a recovery in the near future.
Shiba Inu Funding Rate Turns Positive
Shiba Inu’s recovery has sparked renewed interest among traders, as indicated by a 16.57% increase in Open Interest, now at $389.04 million. Although long-to-short ratios suggest a bearish influence, the funding rate has recently turned positive, rising to 0.0083%. This suggests that traders are regaining confidence and are more willing to hold long positions.
Price Targets for SHIB
With the recovery underway, Shiba Inu’s next challenge will be breaking through the local resistance trendline, near the 23.60% Fibonacci level at $0.00002195. If the rally continues, SHIB could see price targets of $0.000024 to $0.00002980, signaling a potential 12.5% to 40% upside. On the downside, key support levels remain at $0.000020 and $0.00001858.
Also Read: Can Shiba Inu (SHIB) Price Surge Ahead of TREAT Token Launch? Here’s What to Expect
As the market recovery continues, Shiba Inu may be well-positioned for further gains if it can maintain momentum and overcome resistance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
