Shiba Inu (SHIB), the well-known and second-largest crypto meme coin based on market cap, is on the verge of breaking out of its current consolidation phase that has lasted for the last five trading days.
As of December 25, 2024, the sentiment in the cryptocurrency space seems to be shifting from a bearish trend to a bullish one, with major assets like Bitcoin (BTC), Ethereum (ETH), and XRP starting to show significant upside momentum.
Bullish On-Chain Metrics
Coinglass, an on-chain analytics firm, has reported a growing interest among traders and long-term holders in SHIB. Long-term holders, in particular, seem to be more confident about the meme coin’s future prospects.
A noteworthy development is the $10 million outflow of SHIB from exchanges over the past three days. This indicates that long-term holders are withdrawing their assets from exchanges, a trend that is likely to continue with the current positive sentiment.
Rising Open Interest
Intraday traders have shown increased interest in SHIB, with open interest rising by 13% in the past 24 hours. This uptick in open interest suggests that traders are actively participating in the asset following the shift in market sentiment.
Shiba Inu (SHIB) Technical Analysis and Upcoming Level
Technical analysis experts believe that SHIB is currently in a bullish phase, having broken out of a consolidation zone and formed a bullish morning star candlestick pattern at the 200 EMA support level. If the current sentiment persists, SHIB could potentially rise by 20% to hit the next resistance level at $0.000028.
Current Price Momentum
As of now, SHIB is trading around $0.000023, marking a price increase of over 6.5% in the last 24 hours. Trading volume has also seen a 5% uptick during the same period, indicating increased participation from traders and investors amidst a positive outlook for the meme coin.
In conclusion, Shiba Inu (SHIB) appears to be on the cusp of a breakout from its consolidation phase, supported by bullish on-chain metrics, rising open interest, and positive technical analysis. Traders and investors are closely monitoring the price action of SHIB, with the potential for further upside momentum in the near future.