SHIB price may soon breakout – Traders should pay attention to these levels

The popular memecoin Shiba Inu (SHIB) is struggling to record any significant price recovery after a continuous downtrend since the beginning of the year. However, at the time of writing, the price of SHIB has increased by 2.9% in the past 24 hours, as trader participation and OI (open interest) surged broadly.

At the time of writing, SHIB is trading at $0.00001295. Due to its high correlation with Bitcoin's price volatility and the anticipated increase in network adoption, can SHIB replicate Bitcoin's recovery efforts?

Technical Setup of SHIB – What Indicators Tell Us?

The technical indicators of SHIB indicate short-term bullish momentum, while the long-term strength of this memecoin remains a question mark. At the time of writing, SHIB is consolidating within a descending wedge pattern, suggesting the potential for a trend reversal.

According to Crypto Sat on CoinMarketCap, a breakout above the key resistance level of $0.0000126 on the downtrend could trigger a bullish trend. The price of SHIB could rise to $0.0000128 in the short term, while targeting $0.0000132 in the medium term.

Source: CoinMarketCapRelative Strength Index (RSI) for SHIB is at 43 over the past 24 hours and has also increased to 51 on the 4-hour time frame. This seems to indicate increasing buying pressure over the past 24 hours.

MACD level (12.26) and the momentum of this memecoin highlights bullish momentum. Similarly, the short-term moving averages (MA) are flashing "buy" at the time of writing. In contrast, the long-term MA signals "sell" – a sign that the current bearish pressure is evident from the low Long-Short ratio of (0.87).

Reverse the uptrend or fakeout different?

The memecoin market has recently been extremely speculative, including established memecoins like Shiba Inu. Some market developments may drive the short-term price increase of SHIB.

For example, Shibarium, the layer 2 blockchain of the memecoin, is on the verge of reaching 10 million blocks. According to Shiba Inu team member Lucie on X, the SHIB community is also looking forward to SHIB OS.

This OS is a solution for businesses and governments looking to transition to a secure and practical decentralized governance model using blockchain in the real world. Thanks to these developments and other market events, the price increase of SHIB may strengthen and sustain an upward trend in the medium term.

Analysis of Shiba Inu holders

According to data from IntoTheBlock, 74% of SHIB is controlled by whales. Most holders (60%) have held for more than a year at a loss, so there is hope for a price recovery.

Large transactions in the past week have increased, along with market developments, which may indicate greater activity from whales related to price increases. With OI rising by (+5.63%) and a high correlation with Bitcoin, the movement of SHIB could follow the price recovery of BTC.

Source: IntoTheBlock## Key levels to pay attention to

If the upward momentum of SHIB is maintained, the breakout could rise to the main resistance area of 0.0000128 – 0.0000132 dollars.

On the contrary, if the bears continue to extend, the support level of $0.0000122 may be tested as the price continues to consolidate. We should monitor the activities of whales and market developments along with these key levels.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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Dinh Dinh

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