2024-5-16 17:30 |
Shiba Inu (SHIB) has broken out of a symmetrical triangle in an uptrend, signaling a hike in the meme coin’s buying pressure.
As of this writing, the leading meme asset is exchanging hands at $0.00002543. It currently trades above the upper trend line of this triangle, which has formed resistance since March 7.
Shiba Inu Enjoys Bullish SentimentWhen an asset’s price breaks above the resistance line of a symmetrical triangle in this manner, it is a bullish sign. It is interpreted as a shift in momentum toward coin accumulation.
SHIB’s rising futures open interest showed that its derivatives market participants have maintained a bullish outlook despite its price troubles in the past few weeks.
SHIB Open Interest. Source: CoinglassAt $77.26 million as of this writing, the meme coin’s open interest has rallied steadily by 38% since the beginning of this month. At its current level, SHIB’s futures open interest sits at its highest since April 14.
When an asset’s open interest climbs in this manner, it suggests an influx of new capital and a rise in the number of traders opening new positions.
The positive funding rate that continues to trail SHIB confirmed the market’s bullish conviction. It suggests that more traders are buying the coin with the expectation of selling at a higher price.
Read More: How To Buy Shiba Inu (SHIB) and Everything You Need To Know
SHIB Funding Rate. Source: CoinglassFunding rates are used in futures contracts to ensure the contract price stays close to the spot price.
When its value is positive, it means that the asset’s contract price is higher than its spot price, and there are more long traders in the market.
SHIB Price Prediction: A Pullback Might Come FirstAlthough SHIB currently trades above its long-term resistance level, the meme coin remains at risk of decline as key technical indicators suggest the presence of bearish elements
Readings from the coin’s Moving Average Convergence Divergence (MACD) showed that the MACD line remains under the signal line. When these lines are arranged this way, the asset’s short-term moving average is below the long-term moving average. Market participants often interpret it as a sell signal.
Further, the coin’s Awesome Oscillator currently posts red bars. The indicator measures market momentum, and when its histogram bars are red like this, it indicates that the current momentum is bearish. It is often considered a sign to start selling or enter short positions.
If selling activity spikes, SHIB’s price might break below the lower trend line of the triangle, which has formed support to trade at $0.00002535.
Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
Shiba Inu Price Analysis. Source: TradingViewHowever, its price continues to move away from resistance in an uptrend, and it may exchange hands at $0.000028.
The post Shiba Inu (SHIB) May Continue Uptrend as It Breaks Out appeared first on BeInCrypto.
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