October was not as positive for cryptocurrencies as expected. Bitcoin and other altcoins have seen unstable prices due to market volatility. With just a few days left in the month, Shiba Inu is looking to make a robust breakout as Bitcoin remains above $70,000. This bullish analysis is supported by several on-chain metrics as they have recently turned positive.
SHIB gains confidence from bullish on-chain metrics
Over the past few hours, SHIB price received strong buying pressure as the meme coin surpassed its immediate resistance lines. Coinglass data shows that Shiba Inu witnessed a total liquidation of almost $1.04 million, of which sellers liquidated approximately $720,000 in short positions.
According to ShibburnSHIB’s daily burn rate has increased by 436%. In the last 24 hours, a significant total of 52,341,966 SHIB have been moved to inaccessible blockchain addresses.
Also Read: Shiba Inu Price Prediction 2024 – 2030: Will SHIB Price Reach $0.00005 This Bull Run?
In addition, there are several positive news reports about the SHIB ecosystem. Lucie, Shiba Inu’s marketing lead, tweeted about an upcoming “strategic upgrade” for Shibarium NFT holders.
She said Shiboshi NFT holders can look forward to new features, roles and greater utility, expanding their value and ways to interact with the ecosystem. This includes exclusive events and rewards that provide opportunities to earn money and connect within the community. This encouraging news could boost buying interest in SHIB, driven by expectations of a possible short squeeze.
According to data from on-chain platform IntoTheBlock, there has been a noticeable increase in several key metrics. Notably, the volume of major transactions for Shiba Inu increased from $15.4 million to $68 million.
However, SHIB’s volatility has decreased significantly, indicating that the likelihood of major price moves is lower. The volatility metric dropped from a high of 114% to 78%.
What’s next for the SHIB Prize?
Shiba Inu has broken above the EMA trendlines, aiming to challenge the $0.00002 resistance level. However, the bears strongly defend further increases. At the time of writing, SHIB price is trading at $0.0000195, up over 2.5% in the last 24 hours.
The uptrend in moving averages and an RSI near 70 indicate a possible breakout. If this happens, the SHIB/USDT pair could gain strength and rise towards a target of $0.000028.
Conversely, if the price declines from current levels and falls below the 20-day EMA, it could indicate that short-term bullish momentum is fading. This could lead to the pair dropping towards the 50-day SMA and remaining within the $0.000012 to $0.000020 range for some time.
The pair has risen within a channel pattern. The lower trendline of this channel is critical; a break below it could indicate the bears are gaining the upper hand.
If the price recovers from its current position, it indicates interest in buying on dips. The bulls will aim to drive the price towards the channel resistance line, where bears could provide resistance. A break and close above this channel would signal a bullish takeover, potentially pushing the pair to $0.000022.