OnChain Data Provides Insights as Shiba Inu SHIB Aims for a 50 Rally

Shiba Inu (SHIB), the ever-popular and second-largest meme coin, is on the verge of breaking out of its consolidation phase and embarking on a remarkable upward rally. This optimistic speculation is fueled by the coin’s positive price movement and the unwavering attention it has garnered from investors and traders.

In-depth technical analysis suggests that SHIB is exhibiting bullish tendencies after successfully breaking free from a robust descending trendline that has been in place since March 2024. However, this breakout has yet to be confirmed. Nonetheless, given the bullish sentiment in the market and Bitcoin’s notable surge, SHIB is poised to experience significant gains in the coming days.

If SHIB manages to close a daily candle above the $0.000021 level, recent price action and historical momentum indicate a strong possibility of the asset skyrocketing by 50% to reach the $0.000029 level in the near future.

Furthermore, SHIB is currently trading above the 200-day Exponential Moving Average (EMA) on the daily timeframe, signaling an uptrend. The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is experiencing an uptrend or downtrend. Therefore, for SHIB’s bullish thesis to hold, it is crucial for it to close a daily candle above the $0.000021 level; otherwise, it may falter.

Supporting the positive outlook for this meme coin are on-chain metrics. According to the esteemed on-chain analytics firm, Coinglass, SHIB’s Long/Short ratio currently stands at 1.03, indicating a strong bullish sentiment among traders. Additionally, its open interest has surged by 27% in the past 24 hours and 11% in the past four hours. This surge in open interest suggests a growing interest from traders and the accumulation of more positions compared to the previous day. Traders and investors often view rising open interest and a long/short ratio above 1 as favorable when establishing long positions.

As of now, SHIB is trading around $0.0000188 and has witnessed a price surge of over 6% in the past 24 hours. During the same period, its trading volume has skyrocketed by 125%, indicating increased participation from traders and investors in anticipation of a potential upward rally.