Shiba Inu (SHIB) surges 10% and rises again…Will it break through $0.0000063?

▲ Shiba Inu (SHIB)/AI Generated Image ©

Shiba Inu (SHIB) continued its upward trend, surpassing the $0.0000060 mark, even after surging more than 10% in a single day. With a surge in trading volume, an increase in open interest, and positive funding rates appearing simultaneously, and technical indicators pointing to a buying advantage, the market's attention is focused on whether it will break through $0.0000063.

According to investment media FXStreet on September 22 (local time), Shiba Inu, after rising more than 10% on Monday, climbed about 3% on Tuesday, trading around $0.0000062. Alongside the meme coin's rally, trading activity and liquidity also expanded. According to Santiment data, SHIB chain's trading volume increased approximately 2.8 times from 74.69 million on Sunday to 210.9 million on Tuesday, approaching levels seen on August 21.

Inflows of funds were also confirmed in the derivatives market. According to Coinglass, SHIB's exchange open interest continued to increase since mid-September, expanding to 12.93 trillion units on Tuesday. FXStreet analyzed that the increase in open interest alongside rising price and trading volume suggests an influx of new long positions. The funding rate also turned positive on September 16, recording 0.0099% on the day. A positive funding rate means that long positions are paying fees to short positions, indicating bullish expectations in the derivatives market.

Technically, buying pressure is dominant. SHIB surged over 10% on Monday, closing above its 200-day Exponential Moving Average (EMA) of $0.0000056. On Tuesday, it rose to around $0.0000062, approaching a major downtrend line. If it breaks through the trend line near $0.0000063 and settles above it on a closing basis, there is a possibility that the uptrend could continue to the next major resistance level of $0.0000068.

Momentum indicators also support the bullish trend. The Relative Strength Index (RSI) is rising towards 70, the overbought threshold, and the Moving Average Convergence Divergence (MACD) has maintained a bullish crossover since last Saturday. The green histogram of the MACD has also expanded, indicating continued upward momentum. Conversely, if the price undergoes a correction, $0.0000056, where the 200-day EMA is located, is suggested as a major support level.

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