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Key Takeaways
What does SHIB’s current price action signal?
SHIB has formed a falling wedge pattern, hinting at a possible 8.75% breakout toward the $0.00001416 resistance level.
What do on-chain metrics reveal about market sentiment?
Binance’s Long/Short ratio of 2.55 shows 71.82% of traders are long despite the downtrend.
It has been a week, and Shiba Inu [SHIB] still remains in a downtrend, having lost nearly 14% of its value.
However, what is now garnering the attention of traders and investors is the price action pattern formed on the four-hour chart, which hints that a potential upside may be on the horizon.
Current price momentum
At press time, SHIB traded near $0.00001295, a level that has remained unchanged over the past 24 hours. However, investor and trader participation during this period has dropped notably.
Data from CoinMarketCap revealed that SHIB’s 24-hour trading volume has declined by 30% compared to the previous day.
Shiba Inu: Upcoming levels
AMBCrypto’s technical analysis suggests that SHIB is in a downtrend on the four-hour chart, but at the same time, it has formed a Falling Wedge pattern.
In addition, the asset has been hovering near the upper boundary of the pattern for the past eight four-hour candles.
Source: TradingView
If momentum builds and SHIB breaks out of the pattern, a strong and quick 8.75% price uptick could be possible. If this happens, the memecoin may reach the next resistance level at $0.00001416.
At press time, SHIB’s Supertrend indicator remained in the red and hovered above the memecoin’s price, indicating that it was in a downtrend.
Whereas, memecoin’s Relative Strength Index (RSI) stood near 43, indicating that it is currently in a neutral zone with no strong bullish or bearish momentum.
On-chain data signals bullish sentiment
It appears that traders are interested in pushing SHIB’s price to higher levels. According to the on-chain analytics tool CoinGlass, traders on the Binance exchange have turned highly bullish.
The Binance SHIBUSDT Long/Short ratio has reached 2.55, indicating strong bullish sentiment. The metric further revealed that 71.82% of Binance traders were holding long positions, while 28.18% held short positions.
Source: CoinGlass
In addition, SHIB’s major liquidation levels were at $0.00001266 on the lower side and $0.00001318 on the upper side.
At these levels, traders were overleveraged, with $533.33k worth of long positions and $261.34k worth of short positions built up.
When combining these metrics, it is clear that bullish dominance has returned to the memecoin, suggesting a potential rally in the coming days.
