Gushiken Yona
Shiba Inu (SHIB) could be poised for a significant rally, according to a technical analysis shared by a crypto analyst, who projects a potential 12-fold increase based on emerging chart patterns, while recent derivatives data shows a massive spike in trading activity.
The heightened market activity comes as technical analysts observe potentially bullish formations on Shiba Inu’s long-term price chart. One analyst, operating under the X handle Crypto Elites, recently highlighted a pattern suggesting significant upside potential, projecting a possible 12-fold increase for the popular meme-inspired token.
Crypto Elites’ analysis points to a structure resembling a “W-bottom” or inverse head and shoulders pattern forming on the SHIB/USDT chart since mid-2022. This pattern is often interpreted by technical analysts as a sign of potential trend reversal, indicating that the price may have found a solid base after a prolonged downturn.
Shiba Inu Technical Analysis Points to Key Resistance Breakout
Central to this bullish outlook is a descending trendline connecting previous major price peaks, which has historically acted as significant resistance. Crypto Elites’ chart projects SHIB decisively breaking above this crucial level, a move often seen as a trigger for further upward momentum.
Following this anticipated breakout, the analyst identifies two key price targets based on Fibonacci extension levels: the first near the previous high around $0.000085171, and a more ambitious target near $0.000183312. Achieving this upper target would represent the substantial 12X gain forecasted by the analyst.
Shiba Inu Derivatives Volume Explodes, Open Interest Climbs
Mirroring the anticipation seen in technical charts, the SHIB derivatives market is experiencing a dramatic surge in activity. Data from Coinglass shows trading volume for SHIB futures and perpetual contracts has skyrocketed by over 165% in the last 24 hours, exceeding $326 million.
Simultaneously, Open Interest – the total value locked in active derivatives contracts – has jumped nearly 32% to approximately $169 million. This significant increase in both volume and open interest underscores heightened trader engagement and suggests substantial capital is being positioned around SHIB’s potential price movement.
Liquidation Data Hints at Recent Short Squeeze Pressure
While the overall 24-hour long/short ratio remains relatively balanced near 1.01, recent liquidation data provides further context. Nearly $1 million in leveraged SHIB positions were liquidated in the past day, with the vast majority (over $840,000) belonging to short sellers betting on a price decrease.
Such significant short liquidations can indicate that recent upward price movements have forced bearish traders out of their positions, sometimes contributing to a “short squeeze” effect that can temporarily accelerate rallies. However, it’s important to note that derivatives data reflects leveraged speculation and can change rapidly.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
