Journalist
Posted:
- SHIB gained 12% in 24 hours and aimed to reclaim April’s low.
- Strong spot demand and bullish sentiment boosted the rally.
Shiba Inu [SHIB] recorded a sharp upswing on the 26th of September, posting 12% gains and extending its monthly recovery to 35%.
This remarkable performance eclipsed even Bitcoin [BTC], which posted 2% on the daily charts and remained quiet overall.
However, the SHIB’s upswing retested a key hurdle, which begs the question: Can bulls mount above the roadblock and push forward?
SHIB at a crossroads
Source: SHIB/USDT, TradingView
The stochastic RSI and RSI flashed bullish signals on the daily chart, underscoring a strong buying pressure for SHIB in the past few days.
However, they also indicated overbought conditions, which often signal a potential price reversal. Given the bullish market structure, the uptrend momentum could continue.
If so, late bulls could seek re-entry after breakout or retest above the resistance at $0.000001763 (marked white) or $0.000018 (April low).
The bullish target would be the 200-day Moving Average (MA) at $0.000020. The bullish target would offer 15% or 11% potential gains based on the two entry positions.
That said, a daily candlestick close below $0.000017 would invalidate the above bullish thesis. SHIB could front a pullback to $0.000015 in such a muted scenario.
SHIB investors on risk-on mode
Source: Coinglass
SHIB investors’ risk-on mode further supported the shared bullish thesis, as denoted by consecutive daily net inflows for two days straight.
Per Coinglass data, SHIB saw $9.1 million in net inflows on Thursday. Spot market demand was also strong on Wednesday, as seen by a $4.7 million daily inflow.
SHIB could edge higher if the strong demand from the spot market extends.
A similar bullish sentiment was also prevalent on the derivatives side. Notably, Open Interest (OI) rates were up 26%, with more liquidated short positions than longs.
Read Shiba Inu [SHIB] Price Prediction 2024-2025
This showed that speculators in the Futures market expected more price appreciation for SHIB.
Source: Coinglass
However, any sharp reversal of recent BTC gains would stall SHIB’s uptrend and invalidate the bullish thesis.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
