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HomeCrypto NewsAnalysisShiba Inu Targets 40% Upside as Bulls Defend $0.00002

Shiba Inu Targets 40% Upside as Bulls Defend $0.00002

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Will Shiba Inu (SHIB) prices bounce back for a breakout rally as the crypto market narrowly escapes an intense correction?

With Bitcoin bouncing back after briefly dipping below the $90,000 mark, the crypto market is on a recovery run. Bitcoin has now reached the $95,000 mark, while meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) are showing signs of a potential reversal.

Over the past 24 hours, the price of Shiba Inu has seen a modest increase of 4%. However, the meme coin continues to maintain dominance above the psychological $0.000020 mark, with a market capitalization of $12.56 billion. As the recovery continues, Shiba Inu’s price analysis suggests a potential breakout rally.

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Shiba Inu Price Analysis

On the daily chart, Shiba Inu’s price trend demonstrates bullish momentum, remaining above the 38.20% Fibonacci level at $0.00002085. Notably, Shiba Inu is currently trading at $0.00002146.

Shiba Inu Price Chart
Shiba Inu Price Chart

However, the price trend also shows signs of a potential head and shoulders pattern, with the 38.20% Fibonacci level acting as the neckline. A close below this critical support level would signal a significant correction for the second-largest meme coin in the market.

Meanwhile, closer inspection of the 4-hour chart shows that SHIB’s price trend reveals a local resistance trendline, limiting bullish growth. Additionally, the $0.000020 psychological level facilitated a V-shaped reversal.

Shiba Inu Price Chart
Shiba Inu Price Chart

Furthermore, the 4-hour RSI line reflects a bullish divergence between the last two lower formations. Hence, the chances of a recovery run in the short-term time frame are significantly higher. 

Shiba Inu Funding Rate Turns Positive, Suggesting Renewed Bullish Interest

With the overnight recovery, Shiba Inu’s Open Interest has witnessed a 16.57% increase to $389.04 million.

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Furthermore, the 24-hour liquidations amounting to $1.33 million, with $1 million in long position liquidations, result in a long-to-short ratio of 0.8783, indicating a strong bearish influence.

Shiba Inu Derivatives
Shiba Inu Derivatives

However, the funding rate has recently turned positive after a dip to negative 0.0073%. Currently, the funding rate stands at 0.0083%, reflecting a renewed interest of traders to hold long positions in Shiba Inu.

SHIB Price Targets

Using the Fibonacci levels on the 4-hour chart, the recovery run is likely to challenge the local resistance trendline. The trendline is close to the 23.60% Fibonacci level at $0.00002195. 

In case of a breakout rally, the short-term price target remains at $0.000024 and $0.00002980. This hints at a 12.50% to 40% upside potential. On the flip side, the crucial support levels are $0.000020 and $0.00001858. 

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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