- SHIB’s successful breakout and RSI signal potential bullish movement, aiming for higher resistance at $0.00004495.
- On-chain and exchange data show mixed signals, but large transactions indicate sustained institutional interest.
Shiba Inu [SHIB] has recently sparked significant excitement within its community, driven by a staggering 144,223.06% surge in burn rates. This unprecedented increase, coupled with a successful breakout from a descending triangle pattern, has reignited optimism among investors.
At press time, SHIB was trading at $0.00003013, reflecting a 4.73% decline in the last 24 hours. Despite this short-term pullback, the recent price movement and growing community engagement suggest that Shiba Inu might continue to show bullish potential.
Has SHIB truly broken free from resistance?
SHIB has recently managed to break out from a key descending triangle pattern. After testing and retesting the resistance level at $0.00002755, it has set its sights on the next key level at $0.00004495.
This breakout suggests bullish potential; however, the sustainability of this movement will depend on the ability to hold above the resistance level.
The Relative Strength Index (RSI) currently sits at 61.49, indicating moderate bullish momentum without suggesting an overbought condition.
Therefore, if Shiba Inu maintains this momentum and manages to break through additional resistance levels, further upward movement is certainly possible.
Source: TradingView
What do SHIB’s on-chain signals indicate?
On-chain data provides valuable insight into market sentiment, and SHIB’s on-chain signals offer mixed messages.
Network growth is currently down by 0.91%, signaling a slight decline in new addresses joining the network, which may point to reduced interest from retail investors.
However, the “in the money” metric at 1.08% shows that a portion of Shiba Inu holders are profitable, which can act as a bullish indicator.
Additionally, large transactions have surged by 2.73%, suggesting that institutional interest or whale activity could be contributing to the price movement. Consequently, while some metrics remain bearish, the overall picture still leans toward bullish sentiment.
Source: IntoTheBlock
What does exchange data reveal?
SHIB’s exchange reserves have increased by 0.1% over the past 24 hours to 137.7T, signaling a slight uptick in liquidity. More coins on exchanges generally correlate with higher market activity, potentially making it easier for SHIB to see more volatility in either direction.
While this slight increase is modest, it’s a sign of heightened activity on trading platforms, which could support price fluctuations.
Source: CryptoQuant
How are market participants reacting?
The current Open Interest (OI) and weighted funding rate for SHIB stand at 0.0555, reflecting a relatively balanced market sentiment. Despite this, the positive burn rate and on-chain signals suggest that bullish pressure could continue to dominate.
Source: Coinglass
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Can SHIB maintain its bullish momentum?
Despite the recent dip, SHIB’s breakout from key resistance levels, combined with promising on-chain data and a solid RSI, suggests that the bullish narrative is not over.
However, for SHIB to sustain its upward trajectory, continued enthusiasm from the community and whale participation will be crucial.
