Will Shiba Inu (SHIB) prices bounce back for a rally as the crypto market narrowly escapes an intense correction?
As Bitcoin bounces back after briefly falling below $90,000, the crypto market is poised for recovery. 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 Shiba Inu price has seen a slight increase of 4%. However, the meme coin continues to maintain its dominance above the psychological mark of $0.000020, with a market capitalization of $12.56 billion. As the rally continues, Shiba Inu price analysis suggests a potential rally.
Shiba Inu Price Analysis
On the daily chart, the Shiba Inu price trend demonstrates bullish momentum, remaining above the 38.20% Fibonacci level at $0.00002085. Notably, Shiba Inu is currently trading at $0.00002146.
However, the price trend also shows signs of a potential head and shoulders pattern, with the 38.20% Fibonacci level acting as a neck line. A close below this critical support level would signal a significant correction for the market’s second-largest coin.
Meanwhile, a closer inspection of the 4-hour chart shows that the SHIB price trend reveals a local resistance trendline, limiting the upside growth. Additionally, the psychological level of $0.000020 facilitated a V-shaped reversal.
Additionally, the 4-hour RSI line reflects a bullish divergence between the last two lower formations. Therefore, the chances of a short-term recovery are significantly higher.
Shiba Inu Funding Rate Turns Positive, Suggesting Renewed Bullish Interest
With the overnight recovery, Shiba Inu Open interest saw a 16.57% increase to $389.04 million.
Additionally, 24-hour liquidations amounting to $1.33 million, with $1 million in long position liquidations, result in a long/short ratio of 0.8783, indicating strong bearish influence.
However, the funding rate recently turned positive after falling to minus 0.0073%. Currently, the funding rate stands at 0.0083%, reflecting renewed interest among traders in holding long positions in Shiba Inu.
SHIB Price Targets
Using Fibonacci levels on the 4-hour chart, the recovery is likely to challenge the local resistance trendline. The trendline is near the 23.60% Fibonacci level at $0.00002195.
In case of a strong recovery, the short-term price target remains at $0.000024 and $0.00002980. This suggests an upside potential of 12.50% to 40%. On the other hand, the crucial support levels are $0.000020 and $0.00001858.
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