Shiba Inu Price Eyes Channel Breakout: Can SHIB Bounce Back?

Shiba Inu is consolidating within a falling channel, as technical indicators hint at a potential bullish breakout. Will SHIB reclaim $0.00001390 or face further downside?

With the broader crypto market recovery gaining momentum, meme coins like Shiba Inu are positioning for a trend reversal. Holding support above $0.00001100, Shiba Inu is preparing for a channel breakout. Could this breakout rally test the 23.60% Fibonacci resistance at $0.00001390? Let’s find out..

Shiba Inu Price Analysis

On the daily chart, Shiba Inu’s recent pullback has formed a falling channel pattern, beginning in mid-May, after it failed to maintain momentum above the 38.20% Fibonacci level at $0.00001639.

Since then, the pullback has led to a 30% decline, bringing the current market price to $0.00001187. However, with multiple lower-priced exchange candles, Shiba Inu continues to hold support above the $0.00001100 level.

This suggests a potential trend reversal, with the possibility of a breakout above the overhead resistance trendline. In such a scenario, a breakout rally could propel SHIB to retest the 23.60% Fibonacci level at $0.00001390.

A minor bullish divergence in the daily RSI line further supports the potential for a breakout. Meanwhile, the closely aligned MACD and signal lines are on the verge of a bullish crossover.

Thus, technical indicators maintain a positive outlook for Shiba Inu. However, a deeper correction within the channel could extend SHIB’s decline toward the psychological support level at $0.00001000.

SHIB Derivatives

As Shiba Inu stands at a critical juncture, optimism in the derivatives market remains subdued due to ongoing price declines. According to Coinglass data, open interest has decreased by 2.14%, falling to $145.33 million, while liquidations over the past 24 hours indicate a bullish wipeout.

Long liquidations have surged to $244,000, whereas short liquidations remain limited to $57,000. This imbalance has pushed the long-to-short ratio down to 0.9298 over the past 24 hours, while the overweighted funding rate has dropped to 0.0019%.

With bullish-aligned traders being wiped out and buying activity declining, the derivatives market maintains a bearish bias. However, a breakout from the falling channel could shift sentiment and potentially revive bullish momentum for SHIB.