Shiba Inu price is on the verge of a breakout from a 20-day consolidation zone. While the rest of the market took off, SHIB struggled to break free from the clutches of the bears. However, this may change soon as the daily candle on the SHIB chart is dangerously close to breaking above the range. The current resistance has been tested once and, therefore, could be stronger. Whale activity is down, but profitability has shot over the roof. Can traders carry Shiba Inu holders back into profit?
Shiba Inu Price as Kusama Wishes Shibarium Happy Birthday
Shiba Inu lead developer Shytoshi Kusama shared a “Happy Birthday” gif with the caption “#Shibarium” to celebrate the SHIB network turning one year old.
#shibarium https://t.co/jNaGiPfWuB pic.twitter.com/1HfcygKNa9
— Shytoshi Kusama™ (@ShytoshiKusama) August 22, 2024
Accompanying the celebratory post were highlights of Shibarium’s achievements and ongoing developments.
Shibarium’s first anniversary came with goodies for SHIB holders as the price increased by 1.5% over the last 24 hours to trade at $0.00001437. Additionally, the daily transaction volume in profit-to-loss ratio from Santiment analytics hit a 7-month high at 6.45.
For every SHIB transaction that has ended in a loss today, 6.45 transactions have returned a profit, a signal that Shiba Inu holders have recorded more profits today than losses. However, 72.79% of SHIB holders are still in losses, although that might change soon after the anticipated breakout.
Data from Coinglass Crypto Derivatives Visualizer shows that the open interest (OI) increased by 0.85% in the last 4 hours, while the price also had an uptick over the same duration. When both OI and price rise, it shows traders are entering long positions because they think the price of SHIB will rise higher.
As mentioned earlier, Shiba Inu price action reflects bullish sentiment as traders continue to bet on it to surge higher.
SHIB Price Wants to Breakout
Shiba Inu price action shows a potential reversal from a recent downtrend, with prices consolidating within a horizontal range. The emergence of a bullish structure is evident, with SHIB price breaking above its 21-day EMA (red line), signaling a possible shift in momentum from bearish to bullish.
If it breaks out of the range, Shiba Inu will likely encounter resistance around $0.00001450 and $0.00001554. Beyond this, the next major resistance is located around $0.00001783.
The technical indicators suggest that SHIB has strong buying pressure, but the upward price movement may be short-term if the price fails to break above the 50-day EMA.
A sustained breakout above the 50-day EMA with increased volume may confirm a longer-term bullish reversal with a long-term target around $0.00001783.
Shiba Inu price prediction shows that if it fails to break out of the range, it may drop lower to $0.00001290 as the market will be weak. It may risk dropping out, which would invalidate the current bullish sentiment.
Frequently Asked Questions (FAQs)
Despite the rest of the market experiencing gains, SHIB has been held back by strong resistance levels and lower whale activity.
If SHIB sustains a breakout above the 50-day EMA with increased volume, a longer-term bullish reversal could be confirmed, with a potential target around $0.00001783.
If SHIB breaks out as predicted, it could result in gains of up to 22%.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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