October hasn’t been as positive for cryptocurrencies as expected. Bitcoin and other altcoins have seen unstable prices due to market volatility. With only a few days left in the month, Shiba Inu aims to make a robust breakout as Bitcoin holds above the $70K mark. This bullish analysis is supported by several on-chain metrics as they recently turned positive.
SHIB Gains Confidence from Bullish On-chain Metrics
Over the last few hours, SHIB price gained strong buying pressure as the meme coin surpassed its immediate resistance lines. Data from Coinglass states that Shiba Inu witnessed a total liquidation of nearly $1.04 million, out of which sellers liquidated around $720K in short positions.
According to Shibburn, the daily burn rate of SHIB, has soared by 436% In the past 24 hours, a significant total of 52,341,966 SHIB was moved to inaccessible blockchain addresses.
Also read: Shiba Inu Price Prediction 2024 – 2030: Will SHIB Price Hit $0.00005 This Bull Run?
Additionally, there are several positive news regarding the SHIB ecosystem. Lucie, the marketing lead for Shiba Inu, tweeted about an upcoming “strategic upgrade” for Shibarium NFT holders.
She mentioned that Shiboshi NFT holders can look forward to new features, roles, and increased utility, enhancing their value and ways to engage with the ecosystem. This includes exclusive events and rewards that offer opportunities to earn and connect within the community. This encouraging news could boost buying interest in SHIB, driven by expectations of a potential short squeeze.
According to data from the on-chain platform IntoTheBlock, there has been a noticeable increase in several key metrics. Notably, the volume of large transactions for Shiba Inu soared from $15.4 million to $68 million.
However, SHIB’s volatility has significantly decreased, indicating a lower likelihood of major price movements. The volatility metric fell from a high of 114% to 78%.
What’s Next for SHIB Price?
Shiba Inu has broken above the EMA trend lines, aiming to challenge $0.00002 resistance level. However, bears are strongly defending further surges. As of writing, SHIB price trades at $0.0000195, surging over 2.5% in the last 24 hours.
The upward trend in moving averages and an RSI near 70 suggest a potential breakout. If this occurs, the SHIB/USDT pair could gain momentum and rise toward a target of $0.000028.
Conversely, if the price falls from its current level and dips below the 20-day EMA, it could indicate that the bullish momentum is fading in the short term. This could lead the pair to drop to the 50-day SMA and stay within the $0.000012 to $0.000020 range for some time.
The pair has been ascending within a channel pattern. The bottom trend line of this channel is critical; a break below it would suggest that the bears are gaining the upper hand.
If the price rebounds from its current position, it implies interest in buying during dips. The bulls will aim to drive the price to the channel’s resistance line, where bears might resist. A breakout and close above this channel would signal a bullish takeover, potentially elevating the pair to $0.000022.
