Shiba Inu Price: 3 Reasons SHIB Is Growing!
SHIB breakout emphasizes bullish momentum, with key support at $0.00001722
Positive market sentiment and liquidation of short positions could boost SHIB's growth potential
Shiba Inu [SHIB] is making headlines once again, with its latest breakout from a falling wedge pattern suggesting bullish potential. At the time of writing, SHIB is trading at $0.0000178, after gaining 5.98% over the past 24 hours.
Thanks to this new momentum, many are wondering – Can SHIB sustain this uptrend and potentially kickstart a broader crypto market rally?
Price Action Analysis
The price of Shiba Inu is testing key levels, indicating signs of a possible trend reversal. The Bollinger Bands (BB) on the chart indicate tightening, with SHIB trading near the upper band at $0.00001784 – a sign of increased volatility and a potential breakout.
Additionally, the RSI is at 65.36 at the time of writing. This suggests that while SHIB may be approaching overbought territory, it still has room to move higher. If the meme coin’s price holds above the moving average, the bullish momentum could continue to build.
Source: TradingView
SHIB On-Chain Activity – A Sign of Rising Interest?
A price increase alone is not enough to fuel a sustained rally. Therefore, it is important to look at on-chain activity, and SHIB data has shown some promising signs. Over the past 24 hours, for example, SHIB's active addresses have increased by 1.1%, reaching 267 at press time according to CryptoQuant.
Additionally, the total number of transactions also increased by 1.1%, reaching a total of 7,410 transactions. The increase in both figures, active addresses and transaction volume, shows increased interest in SHIB – a positive indicator for its long-term prospects.
Source: CryptoQuant
Long Term vs. Short Term – Positive Sentiment Prevails
Additionally, an analysis of SHIB’s long/short ratio shows a more positive sentiment. At the time of writing, 55.62% of positions are long, with only 44.38% short. The long/short ratio stands at 1.2533, indicating that traders have been betting mostly on SHIB’s uptrend.
Therefore, this positive sentiment could further strengthen the price movement of SHIB. Especially if many traders continue to open long positions.
Source: Coinglass
Liquidation – Can the next step be triggered?
Finally, looking at liquidation data provides an additional layer of insight. SHIB has seen $267,640 in short liquidations over the past 24 hours, compared to $214,240 in long liquidations.
So this means that short sellers are under increasing pressure. This could force them to exit their positions and push the price of SHIB even higher.
Source: Coinglass
Thanks to the factors mentioned, a sustained bull run could be in store for Shiba Inu. This would be accelerated if the broader cryptocurrency market, led by Bitcoin, also grows.
Although there is no certainty in the market, the current market trend of SHIB has suggested a positive outlook for sustainable growth in the near future.
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