Shiba Inu (SHIB) prices are showing signs of recovery alongside the broader crypto market rebound, but several technical factors suggest that its price trend could go either way in the short term.

SHIB Price Analysis: A Potential Breakout or Correction?

• Daily Chart Overview:

SHIB is currently trading at $0.00002146, maintaining its position above the 38.20% Fibonacci level at $0.00002085, which acts as a key support zone. This level has been critical in preserving bullish momentum.

However, a possible head-and-shoulders pattern is emerging, with the $0.00002085 level acting as the neckline. A daily close below this level could trigger a sharp correction.

• Short-Term Chart Insights:

On the 4-hour chart, SHIB is experiencing resistance at a local trendline, aligned with the 23.60% Fibonacci level at $0.00002195. A V-shaped reversal from the $0.000020 level and a bullish divergence in the RSI indicate the potential for a near-term breakout.

Market Sentiment and Indicators

• Open Interest: SHIB’s Open Interest rose 16.57% to $389.04 million, signaling increased participation in the derivatives market.

• Funding Rate: After briefly turning negative, the funding rate has shifted positive to 0.0083%, indicating renewed bullish interest as traders build long positions.

• Liquidations: Over the past 24 hours, $1.33 million in liquidations occurred, with $1 million in long liquidations, reflecting bearish pressure but also clearing out weak positions.

SHIB Price Targets

1. Bullish Scenario:

If SHIB breaks above the local resistance trendline and surpasses the $0.00002195 level, the next targets are:

• $0.000024 (12.50% upside)

• $0.00002980 (40% upside)

2. Bearish Scenario:

Failure to hold above the $0.000020 psychological level could lead to a retest of lower support levels:

• $0.000020

• $0.00001858