Shiba Inu Breaks Out! What’s Next for SHIB’s Price After Massive Surge?

The popular memecoin Shiba Inu (SHIB) is once again generating significant buzz in the crypto world, following a notable price surge and signals of continued bullish momentum. With the token breaking out of a crucial technical pattern, SHIB is showing promise for short-term gains and potentially a broader rally across the cryptocurrency market. But what’s driving this newfound momentum?

In this article, we’ll explore three key reasons why Shiba Inu (SHIB) is on the right track, and why it could maintain its upward trajectory.

1. Breakout from a Falling Wedge Pattern

One of the most compelling technical indicators for Shiba Inu is its recent breakout from a falling wedge pattern, a bullish signal in technical analysis. At the time of writing, SHIB was trading at $0.0000178, marking a 5.98% increase over the last 24 hours. This breakout suggests that buying pressure is building, and it could signal the start of a more extended rally.

The Bollinger Bands (BB) on the price chart are showing tightening, with SHIB trading near the upper band at $0.00001784. This is a sign of increased volatility and a potential for further price movement. In particular, when price action nears the upper BB, it often suggests that momentum is building for a breakout. The market may soon see even higher highs if SHIB can continue this bullish trend.

Another positive indicator is the Relative Strength Index (RSI), which is currently sitting at 65.36. While this places SHIB close to overbought territory, it still has room for more upward movement before hitting extreme levels. If the memecoin can maintain its price above key support levels, bullish momentum may continue to strengthen.

2. Increased On-Chain Activity and Growing Interest

Beyond price action, on-chain activity provides valuable insights into a cryptocurrency’s long-term potential. For Shiba Inu, on-chain metrics are pointing in the right direction, signaling growing interest among investors and users alike.

Over the past 24 hours, SHIB’s active addresses rose by 1.1%, reaching 267 active addresses according to CryptoQuant data. Similarly, the transaction count saw a 1.1% increase, totaling 7.41k transactions during the same period. This uptick in both active addresses and transaction volume indicates increasing demand for SHIB and suggests that more users are engaging with the token.

The rise in on-chain activity is a critical factor in sustaining price gains, as it reflects heightened interest and participation from both retail and institutional investors. A sustained increase in active addresses and transaction count is often a precursor to longer-term growth, as it demonstrates that the project is gaining traction within the broader crypto community.

3. Bullish Sentiment and Short Liquidations Fueling the Rally

The final reason to remain optimistic about Shiba Inu’s price prospects is the overall bullish sentiment dominating the market. Analyzing SHIB’s long/short ratio reveals that more traders are betting on further price gains for the memecoin. At present, 55.62% of positions are long, while 44.38% are short. This long/short ratio of 1.2533 indicates that the majority of traders expect SHIB’s price to continue rising in the near future.

Additionally, liquidation data offers another insight into why SHIB could see further upside. Over the last 24 hours, SHIB experienced $267.64k in short liquidations compared to $214.24k in long liquidations. This suggests that short sellers—those betting on SHIB’s price falling—have been under increasing pressure. As more short positions get liquidated, it forces traders to buy back into the market, which could further propel SHIB’s price upward.

These liquidations serve as a potential catalyst for future price gains. As the market continues to favor long positions, short-sellers may be forced to exit their positions, driving further price increases and contributing to an overall positive sentiment around SHIB.

What’s Next for Shiba Inu?

With positive technical signals, growing on-chain activity, and bullish market sentiment, Shiba Inu appears to be on solid footing for sustained growth in the near term. The memecoin has already demonstrated its potential with recent price gains, and a broader crypto market rally—led by Bitcoin—could further accelerate SHIB’s upward momentum.

While volatility remains a natural part of the cryptocurrency market, the prevailing trends for Shiba Inu suggest a favorable outlook for the token in the coming weeks. If the market continues to support SHIB, we could see the memecoin retest higher resistance levels and potentially enter a new phase of growth.

For those considering an investment in SHIB, it’s essential to monitor key support and resistance levels and stay updated on broader market conditions. While the current indicators are promising, external factors such as market sentiment, regulatory changes, and macroeconomic events can influence the token’s price movement.

Realistic or not, here’s SHIB’s market cap in Bitcoin’s terms: Shiba Inu still has plenty of room to grow if its recent trends continue. For now, all eyes are on SHIB to see if it can maintain its upward trajectory and capitalize on its current momentum.

Final Thoughts

As one of the most popular memecoins in the cryptocurrency space, Shiba Inu continues to capture the attention of investors and traders alike. With strong technical indicators, increasing on-chain activity, and a bullish market sentiment, SHIB is well-positioned for further growth. However, as with any cryptocurrency investment, it’s important to stay informed and prepared for market fluctuations.

Whether or not SHIB will achieve a broader breakout and spark a larger rally remains to be seen—but the memecoin is certainly on the right track.