Shiba Inu Eyes 100% Breakout Gains as Open Interest Nears $53M

With the Shiba Inu price surging 12% to break a long-coming channel, will the meme coin give 2x gains this year?

Shiba Inu price action reveals a falling channel pattern breakout rally gaining momentum. The sudden boost in trading volume propels Shiba Inu for a 12.52% jump today from the opening price of $0.00001526. 

Currently, it is trading at $0.00001717 and has formed a bullish engulfing candle. Will this surge in demand and a breakout rally result in a 100% surge for Shiba Inu?

Shiba Inu Breaks The Channel

The significant surge creates a triple white soldier pattern, and the recovery rally has surpassed the crucial 100-day and 200-day EMA dynamic average lines.

Based on Fibonacci levels, the recovery from the baseline of $0.00001266 is challenging the 23.60% level at $0.00001730, with nearly a 30% increase in the last ten days from $0.00001318.

As the falling channel breakout rally gains momentum, the Shiba Inu price action teases a rounding bottom formation. The neckline of the rounding bottom pattern stands between the 23.60% and 38.20% Fibonacci levels near $0.19. 

As the bullish engulfing candle will likely surpass the 23.60% level, the Shiba Inu price may shortly test the overhead in the neckline. Supporting this bullish trend, the MACD and signal lines are moving positively with increasing bullish histograms.

Shiba Inu Open Interest Ready To Hit $53M 

Based on the data from Coinglass, the Shiba Inu derivatives market has recovered significantly. Open interest has increased by 43.70% and is on the verge of hitting $53 million. With the rise of open interest, volumes have increased more than 200% and reached $434 million. 

Typically, a rise in open interest signals market optimism for a bullish trend. However, the long-to-short ratio over the past 24 hours is at 0.9743, indicating slight weakness with more short positions.

Additionally, liquidation data shows over $1 million worth of positions wiped out in the past 24 hours, including $872K in shorts and $204K in longs.

Will Shiba Inu Breakout Run Surge 2X?

Based on price action analysis using Fibonacci levels and the rounding bottom pattern, the meme coin’s breakout rally appears promising. It could potentially reach the 61.80% Fibonacci level at $0.00002868 and the 78.60% level at $0.00003582.

Hence, with an upside of more than 100%, the meme coin will likely be one of the top performers in the crypto market. On the other hand, its crucial support levels are at $0.00001584 and $0.00001449.