thecryptobasic.com
Will Shiba Inu (SHIB) prices bounce back for a breakout rally as the crypto market narrowly escapes an intense correction?
With Bitcoin bouncing back after briefly dipping below the $90,000 mark, the crypto market is on a recovery run. Bitcoin has now reached the $95,000 mark, while meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) are showing signs of a potential reversal.
Over the past 24 hours, the price of Shiba Inu has seen a modest increase of 4%. However, the meme coin continues to maintain dominance above the psychological $0.000020 mark, with a market capitalization of $12.56 billion. As the recovery continues, Shiba Inu’s price analysis suggests a potential breakout rally.
Shiba Inu Price Analysis
On the daily chart, Shiba Inu’s price trend demonstrates bullish momentum, remaining above the 38.20% Fibonacci level at $0.00002085. Notably, Shiba Inu is currently trading at $0.00002146.
However, the price trend also shows signs of a potential head and shoulders pattern, with the 38.20% Fibonacci level acting as the neckline. A close below this critical support level would signal a significant correction for the second-largest meme coin in the market.
Meanwhile, closer inspection of the 4-hour chart shows that SHIB’s price trend reveals a local resistance trendline, limiting bullish growth. Additionally, the $0.000020 psychological level facilitated a V-shaped reversal.
Furthermore, the 4-hour RSI line reflects a bullish divergence between the last two lower formations. Hence, the chances of a recovery run in the short-term time frame are significantly higher.
Shiba Inu Funding Rate Turns Positive, Suggesting Renewed Bullish Interest
With the overnight recovery, Shiba Inu’s Open Interest has witnessed a 16.57% increase to $389.04 million.
Furthermore, the 24-hour liquidations amounting to $1.33 million, with $1 million in long position liquidations, result in a long-to-short ratio of 0.8783, indicating a strong bearish influence.
However, the funding rate has recently turned positive after a dip to negative 0.0073%. Currently, the funding rate stands at 0.0083%, reflecting a renewed interest of traders to hold long positions in Shiba Inu.
SHIB Price Targets
Using the Fibonacci levels on the 4-hour chart, the recovery run is likely to challenge the local resistance trendline. The trendline is close to the 23.60% Fibonacci level at $0.00002195.
In case of a breakout rally, the short-term price target remains at $0.000024 and $0.00002980. This hints at a 12.50% to 40% upside potential. On the flip side, the crucial support levels are $0.000020 and $0.00001858.