Shiba Inu, the second-largest meme coin, has witnessed a quick bounce-back over the past 24 hours. Currently, the meme coin trades at a market price of $0.00001279 while keeping the bullish trend intact.
With the sudden turnaround in crypto market, Shiba Inu is hinting at a potential trend reversal fueled by a potential bullish pattern. Will the underlying shift in sentiment fuel a 70% breakout rally in Shiba Inu? Let’s find out.
Shiba Inu Price Analysis
In the daily chart, the Shiba Inu price trend clearly dictates a bearish trend in motion. The meme coin fell from a peak close to $0.000033 to a bottom at $0.000010 psychological mark. This accounted for a price drop of nearly 70% within four months.
However, things took a quick turnaround after the meme coin hit a psychological level. With a quick turnaround, Shiba Inu tested a $0.000015 psychological level in late April.
However, with the broader market correction, Shiba Inu is now back under the 50-day EMA line. Nevertheless, as Shiba Inu consolidates under the $0.000015 mark, the underlying shifting sentiment forms a bullish pattern.
The daily chart reveals an inverted head-and-shoulders pattern formed with a neckline at $0.00001450. With a lower price direction, Shiba Inu sustains the positive trend indicated by the Supertrend indicator.
However, the recovery run is far from reaching the neckline close to the 100-day EMA. If the meme coin manages to give a breakout rally, the uptrend could witness a price surge to $0.00002157, indicated by the 61.80% Fibonacci level. This reflects a price surge of 70% from the current market price per the SHIB price prediction.
On the flip side, the crucial support for Shiba Inu remains the $0.000010 psychological level.
Shiba Inu Derivative Traders Anticipate Trend Reversal Rally
As Shiba Inu hints at a gradual bullish turnaround, the optimism in the derivatives market is gradually increasing. As per the data from CoinGlass, the Shiba Inu long-to-short ratio witnessed a spike in long positions of 51.96% over the past four hours.
This has pumped the long-to-short ratio to 1.0816, reflecting a surge in bullish sentiment. Additionally, the Shiba Inu open interest has surged by nearly 4% to $155.57 million, with a funding rate at 0.0068%.
Hence, the Shiba Inu derivatives analysis reflects a massive boost in bullish sentiment, anticipating a potential trend reversal.
