Shiba Inu’s Open Interest Spikes 13%, Analyst Foresees 500% Rally

The post Shiba Inu’s Open Interest Spikes 13%, Analyst Foresees 500% Rally appeared first on Coinpedia Fintech News

Amid the ongoing challenges in the cryptocurrency landscape, an analyst has shared a bullish outlook for Shiba Inu (SHIB). In a post on X (previously Twitter), the analyst noted that SHIB is on the verge of breaking out of a massive bullish falling wedge price action pattern on a daily time frame. 

Shiba Inu Near Breakout 

This breakout could potentially lead to a significant rise of nearly 500% in the coming days. He also noted that SHIB’s bullish breakout is being confirmed by a recent bullish divergence, which could indicate an upcoming bullish breakout.

$SHIB (Shiba Inu)'s ≈6X:

Prices of Shiba are currently nearing the converging or breakout point of a massive Falling Wedge pattern on the daily (1d Chart) and with a recent confirmation of a Regular Bullish Divergence, this can be pointing to a bullish breakout!

This can spark… pic.twitter.com/sAUSyrH4q0

— JAVONMARKS (@JavonTM1) August 17, 2024

However, SHIB’s last massive rally was seen in February 2024, following the approval of the spot Bitcoin Exchange Traded Fund (ETF) in the United States. Since then, it has been in continuously falling and experienced a price decline of over 70%. Despite this significant price decline over the past four months, SHIB remains the second-largest meme coin in the crypto market with a market cap of over $7.85 billion.

As per the post on X, if SHIB experiences the breakout of this bullish price action pattern in the coming days, there is a high possibility it could hit the $0.000081 level.

SHIB Price Analysis

As of now, SHIB is trading near the $0.00000133 level and has experienced a price surge of over 1% in the last 24 hours. Meanwhile, its trading volume has dropped by 50% during the same period, suggesting lower participation from traders potentially due to the ongoing selling pressure.

SHIB Price Prediction 

According to expert technical analysis, SHIB is in a downtrend as it is trading below the 200 Exponential Moving Average (EMA) on a daily time frame. However, it will be very difficult for the SHIB to experience a significant upside rally until it closes a weekly candle above the $0.0000183 level.

Source: Trading View

Whereas, investors’ interest in the last 24 hours is increasing. According to the on-chain analytic firm Coinglass, SHIB’s open interest has increased by 13% which hints at higher interest from investors.