Shiba Inu aims for 40% rally, Insights from on-chain data

• 62.08% of top SHIB traders held long positions, indicating that bulls are dominating the market.
• SHIB’s trading volume surged by 190%, signaling that bulls were back in the market.

Shiba Inu’s [SHIB], the second-largest meme coin by market cap, is making waves in the cryptocurrency landscape following its bullish price action.

Moreover, the current market sentiment appears favorable for the meme coin, as Bitcoin [BTC] was nearing its ATH.

Shiba Inu’s technical analysis and key levels

According to AMBCrypto’s technical analysis, SHIB appears bullish as it was on the verge of breaking out from a crucial descending trendline that has constrained the asset since March 2024.

Source: TradingView

In addition to this trendline breakout, SHIB also formed a bullish inverted head-and-shoulder price action pattern on a weekly time frame, with its second shoulder nearing completion.  

 If SHIB successfully breaks out of this pattern and closes a daily or weekly candle above the $0.000019 or $0.000021 level, there is a strong possibility that it could soar by 40% to reach the $0.000030 level in the coming days.

Bullish on-chain metrics 

SHIB’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SHIB’s Long/Short Ratio on the four-time frame stands at 1.637, indicating a strong bullish sentiment among traders.

Source: Coinglass

Additionally, its Open Interest (OI) jumped by 17% over the past 24 hours and was seen to be steadily rising.

This rising OI suggested that traders believe in the meme coin’s potential and are increasingly betting on long positions.

At press time, 62.08% of top traders held long positions, while 37.92% held short positions.

Traders sentiment and current price momentum 

Traders and investors often consider rising OI and Long Short Ratio above one, when building long positions.

Additionally, the combination of these bullish on-chain metrics and technical analysis pointed out that the bulls are currently in control, with a breakout appearing imminent.

Read Shiba Inu [SHIB] Price Prediction 2024-2025

At press time, SHIB was trading near $0.0000182 after experiencing a price surge of over 7.85% in the past 24 hours.

During the same period, its trading volume skyrocketed by 190%. This highlights the heightened participation from traders and investors amid growing bullish sentiment.