Key Insights:
- Shiba Inu (SHIB) jumps 17% in 24 hours, supported by a 240% surge in trading volume.
- Whale transactions hit 10-week highs, showing renewed interest and strong market activity for SHIB.
- SHIB’s breakout from a falling wedge pattern suggests potential for a 326% price increase.
Shiba Inu (SHIB) has experienced a sharp price increase of 17% in the last 24 hours, pushing it to $0.00001916. The rally is supported by a 240% surge in daily trading volumes, exceeding $1.36 billion. This sudden price action and increased market activity are reminiscent of the 2021 bull run, driving optimism among investors and traders.
Several key market factors, including heightened on-chain activity and increased whale transactions, have fueled the recent surge in Shiba Inu’s price. According to crypto analytics platform Santiment, SHIB has seen a 43% rise in the last nine days, coinciding with a significant increase in trading volumes and circulation. Additionally, SHIB whale transactions have reached a 10-week high, reflecting renewed interest from large investors.
😺📈 Shiba Inu has surged +43% in the past 9 days with on-chain activity notably surging compared to altcoin alternatives and other meme coins. In addition to volume, circulation, and whale transactions spiking to 10-week highs, social dominance is up as well. This indicates that… pic.twitter.com/w13pdr4r7K
— Santiment (@santimentfeed) September 26, 2024
The growing social dominance of SHIB indicates a strong sense of FOMO (fear of missing out) among traders. This social sentiment boost has further driven SHIB’s price upward. However, analysts have cautioned that the rapid price increase could potentially lead to the formation of a local top, where prices could stabilize or pull back.
Technical Analysis Points to Potential Further Gains
Technical analysis suggests that Shiba Inu’s price surge could be the beginning of a larger bullish trend. Market analyst Javon Marks highlighted that SHIB has recently broken out of a falling wedge pattern, a technical indicator often seen as a bullish reversal sign. This pattern is formed by two converging trend lines that narrow over time, typically signaling the end of a downtrend.
After dropping from its yearly peak of $0.000045 in early March, SHIB formed a series of lower highs and lower lows, creating the falling wedge. The recent breakout from this pattern has been accompanied by a retest of the upper trendline, allowing bulls to gather strength.
Source: X
Marks projects that SHIB could rally to $0.000081, representing a 326% increase from its current price levels. However, sustaining this bullish momentum is crucial for reaching these ambitious targets.
Derivatives Data Shows Rising Bullish Sentiment
Shiba Inu’s rising price is also reflected in the derivatives market, where open interest has surged by 55.14%, surpassing $65.54M. Coinglass data indicates that SHIB liquidations over the past 24 hours have reached $2.23 million, with $1.29 million in short liquidations, suggesting that bearish traders are being squeezed out as the price rises.
Additionally, a strong uptick in the funding rate further indicates growing bullish sentiment among SHIB futures traders.
The surge in derivatives activity supports the possibility of continued price gains, with analysts eyeing a potential breakout above $0.000020 as a critical level for further upside. If SHIB manages to sustain this momentum, a subsequent 100% rally could be on the horizon.
As market participants weigh the potential for SHIB’s continued rally, many question whether the cryptocurrency can replicate its 2021 performance, which surged 45,000% in a few months. For SHIB to reach past its previous highs or even approach the much-speculated $1 mark, it would require an exponential increase in trading volumes and broader market participation. Despite ongoing token burns, the vast supply of SHIB remains challenging to achieving such extreme price levels.
Meanwhile, the Shiba Inu ecosystem continues to expand with recent announcements, including the launch of the SHI stablecoin. Moreover, the total value locked (TVL) on Shiba Inu’s Layer 2 network, Shibarium, has reached a new high of $3.64 million, reflecting growing investor confidence in the project’s broader ambitions.
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