Shiba Inu is consolidating within a falling channel, as technical indicators hint at a potential bullish breakout. Will SHIB reclaim $0.00001390 or face further downside?
With the broader crypto market recovery gaining momentum, meme coins like Shiba Inu are positioning for a trend reversal. Holding support above $0.00001100, Shiba Inu is preparing for a channel breakout. Could this breakout rally test the 23.60% Fibonacci resistance at $0.00001390? Let’s find out..
Shiba Inu Price Analysis
On the daily chart, Shiba Inu’s recent pullback has formed a falling channel pattern, beginning in mid-May, after it failed to maintain momentum above the 38.20% Fibonacci level at $0.00001639.
Since then, the pullback has led to a 30% decline, bringing the current market price to $0.00001187. However, with multiple lower-priced exchange candles, Shiba Inu continues to hold support above the $0.00001100 level.
This suggests a potential trend reversal, with the possibility of a breakout above the overhead resistance trendline. In such a scenario, a breakout rally could propel SHIB to retest the 23.60% Fibonacci level at $0.00001390.
A minor bullish divergence in the daily RSI line further supports the potential for a breakout. Meanwhile, the closely aligned MACD and signal lines are on the verge of a bullish crossover.
Thus, technical indicators maintain a positive outlook for Shiba Inu. However, a deeper correction within the channel could extend SHIB’s decline toward the psychological support level at $0.00001000.
SHIB Derivatives
As Shiba Inu stands at a critical juncture, optimism in the derivatives market remains subdued due to ongoing price declines. According to Coinglass data, open interest has decreased by 2.14%, falling to $145.33 million, while liquidations over the past 24 hours indicate a bullish wipeout.
Long liquidations have surged to $244,000, whereas short liquidations remain limited to $57,000. This imbalance has pushed the long-to-short ratio down to 0.9298 over the past 24 hours, while the overweighted funding rate has dropped to 0.0019%.
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SHIB Derivatives
With bullish-aligned traders being wiped out and buying activity declining, the derivatives market maintains a bearish bias. However, a breakout from the falling channel could shift sentiment and potentially revive bullish momentum for SHIB.
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.
