Shiba Inu price is on the verge of breaking above a key bullish reversal pattern after the market momentum increased due to Bitcoin rallying to a new all-time high. If this breakout happens, SHIB investors currently at and outside the money could be looking at $3.45 billion in profits. Will the price of SHIB rise by 150% and rescue this liquidity that is currently dead in the water?

SHIB price is currently trading at $0.00001921, dangerously close to the stubborn multi-month resistance. This price represents a 2% increase in the last 24 hours and a 9.5% rise in the last 7 days. Bitcoin is up 1.6% and trading around $76,125, pulling up the crypto market by 0.2% to $2.685 trillion. Can Shiba Inu capitalize on Bitcoin’s momentum to break the overhead resistance?

$3.45B To Be Rescued After This Shiba Inu Price Breakout

Data from IntoTheBlock (ITB) shows that currently, 44% of Shiba Inu investors are either at the money (2%) or out of the money (42%). This number, however, is about to drastically drop since SHIB technical analysis shows an breakout is imminent. The price breakout is anticipated to sent SHIB price above $0.000045, which constitutes a 149% increase.

Currently, ITB data shows there is 182.65 trillion ($3.45 billion) SHIB wallowing underwater between $0.000019 and $0.000051.

A 149% breakout could boost this dead liquidity into profit, shifting the overall SHIB tokens in profit from 78.42% to over 96%. 

Onchain Metrics Show SHIB Price Will Breakout

Shiba Inu price shows promise of breaking out, at least from analyzing on-chain metrics and traders behavior. Data from Coinglass Liquidation Map (LM) suggests that traders are currently more bullish on SHIB than they are bearish. The 24-hour cumulative Long Liquidation Leverage for SHIB was at $3.42 million on OKX, compared $2 million in Shorts.

This imbalance is also reflected in the weekly and monthly timeframes, and suggests bullish sentiment is dominating the SHIB derivative markets because traders anticipate price will move higher in the future.

Additionally, according to Santiment analytics data, the SHIB price-Daily Active Addresses (DAA) divergence shot up to a one-month high. When DAA increases and price is lagging as in the current case, it usually points a bullish signal that the price could catch up soon, leading to a potential price increase.

Further, Shiba Inu 30-day realized cap has been on the rise since November 3 while the 365-day is still soaring higher. This means that short-term holders (potentially new investors) are entering the market and could provide the necessary volume needed to push Shiba Inu price beyond the overhead resistance. 

Moreover, having long term holders also increase means early SHIB investors are still confident in the project’s ability to deliver handsome returns in the long run.

All these metrics point to high likelihood of the price of SHIB breaking above the stubborn resistance in the coming days.

SHIB Price Analysis: Key Levels To Watch

Shiba Inu price forecast reveals a inverted head and shoulders pattern, which is usually a bullish reversal market structure. The immediate stubborn resistance at $0.00002050 has held price down since late June until now. 

If the new wave of incoming investors provide enough volume, SHIB price may break above this barrier and head toward $0.00004567, which coincides with the yearly high. On the way iup, SHIB may encounter a resistance around $0.00002500

Bears could invalidate this bullish thesis if they push the price below the small ascending triangle forming at the right shoulder. This would send SHIB to $0.000016 and $0.000013 support levels.

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.