Shiba Inu (SHIB), the popular memecoin, is showing signs of a potential reversal from its recent downtrend. Supported by a 7-month high in daily profit ratios, SHIB is poised for a breakout that could see it surge by 22%.
Shibarium Celebrates First Anniversary
As Shiba Inu’s price action heats up, the network’s layer-2 solution, Shibarium, celebrated its first anniversary. Lead developer Shytoshi Kusama marked the occasion with a celebratory post highlighting the network’s achievements and ongoing developments.
Profitability Soars for SHIB Holders
The surge in Shiba Inu’s profitability is evident in its daily transaction volume profit-to-loss ratio, which hit a 7-month high of 6.45. This indicates that for every SHIB transaction resulting in a loss, over six transactions have ended in profit.
Despite this positive trend, a significant portion of SHIB holders remain in the red. However, the anticipated breakout could change this narrative, potentially lifting many holders out of the loss zone.
Whale Activity and Market Sentiment
While whale activity has been relatively subdued, the market sentiment surrounding Shiba Inu appears to be bullish. The increase in open interest (OI) suggests that traders are entering long positions, betting on a further rise in SHIB’s price.
Technical Analysis: A Potential Breakout
Shiba Inu’s technical analysis indicates a potential breakout from a 20-day consolidation zone. The price’s proximity to the upper boundary of this range, coupled with the positive momentum, suggests that a breakout could be imminent.
If SHIB successfully breaks out, it may encounter resistance at $0.00001450 and $0.00001554. A sustained breakout above the 50-day EMA, accompanied by increased volume, could signal a longer-term bullish reversal with a target of around $0.00001783.
Conclusion
Shiba Inu is showing signs of a potential recovery, driven by increased profitability and positive market sentiment. As the memecoin approaches a potential breakout from a consolidation zone, traders are eagerly anticipating a significant price increase. However, it’s important to note that the cryptocurrency market remains volatile, and investors should exercise caution and conduct thorough research before making any investment decisions.