Shiba Inu (SHIB) Price: Traders Pile In as Open Interest Surges

TLDR

Table of Contents

Shiba Inu (SHIB) price is currently trading around $0.0000123, down 86.13% from its all-time high
Analyst CryptoELITES predicts a potential 17x rally to $0.00021 as SHIB enters a “buy zone”
Open interest for SHIB has increased 43% in two weeks to $135M, indicating growing trader conviction
SHIB supply on exchanges has fallen to record lows, potentially creating conditions for a supply squeeze
Technical indicators show potential for an upward trend with RSI moving toward the overbought range

The popular meme coin Shiba Inu (SHIB) is currently trading at approximately $0.0000123, down about 2.8% at press time despite the broader meme coin market tracking upward with Bitcoin’s recent surge to $88,000. Despite this short-term downtrend, a prominent analyst suggests SHIB has entered a strategic “buy zone” that could precede a dramatic price increase.

According to crypto analyst CryptoELITES, Shiba Inu might be poised for a rally between 14x and 17x from current levels. Such a move would potentially push SHIB’s price to between $0.00018 and $0.00021, representing a substantial gain for holders of the second-largest meme coin by market capitalization.

This bullish outlook hinges on SHIB’s ability to maintain support at its lower descending trendline while eventually breaking through key resistance at the 0.618 Fibonacci level of $0.00003.

Supply and Demand Dynamics

Data from Santiment reveals that SHIB supply on exchanges has fallen to record lows. This reduction in available supply could create conditions for a price squeeze if demand increases at current levels.

With less SHIB readily available for trading on exchanges, even a moderate uptick in buying pressure could potentially drive prices higher due to limited selling supply. This supply-demand imbalance lends support to the bullish case for SHIB.

The Shiba Inu ecosystem, built on Ethereum, has seen its value drop 41.34% this year. It currently trades 86.13% below its all-time high of $0.00008845, reflecting the challenging conditions faced by the broader cryptocurrency market throughout much of 2024.

Growing Open Interest

Another positive indicator for SHIB comes from futures markets. Data from Coinglass shows that open interest in Shiba Inu has surged by 43% over the past two weeks, reaching $135 million from around $94 million.

This increase suggests futures traders are opening new positions on SHIB with optimism about an impending strong price movement. While this growing interest supports the bullish thesis, it’s worth noting that increased leverage activity could also lead to higher volatility for the token.

Open interest refers to the total number of outstanding derivative contracts that have not been settled. Rising open interest alongside price increases typically indicates strong market conviction and can precede continued upward momentum.

Technical Indicators Point Upward

Technical analysis also offers some encouraging signs for SHIB holders. The Simple Moving Average (SMA) appears to be moving toward a positive crossover on daily charts, which many traders interpret as a buy signal.

The Relative Strength Index (RSI) has broken above the neutral point and continues moving toward overbought territory. While an overbought RSI can sometimes precede a correction, it often indicates strong buying momentum in the early stages of a trend.

If market sentiment remains positive, SHIB could potentially test the $0.0000150 level in the near term. With sustained bullish momentum, the token might reach toward the $0.000020 mark, aligning with analyst predictions.

However, should bearish forces take control, SHIB may experience a pullback within its descending channel pattern, potentially testing support around $0.00001025.

The meme coin market as a whole has seen its total capitalization increase to $50 billion, gaining about 3% recently. This broader sector growth provides a supportive backdrop for individual meme coins like SHIB to potentially stage recoveries.

For Shiba Inu to confirm the bullish outlook projected by analysts, it must first overcome immediate resistance levels while maintaining growing interest from traders and investors. The combination of falling exchange supply, increasing open interest, and favorable technical indicators creates conditions that could support price appreciation.

Market observers note that SHIB’s price movement will ultimately depend on its ability to attract fresh buying demand at current levels, which many now consider a potential entry point given analyst projections of substantial upside potential.

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