The meme cryptocurrency Shiba Inu (SHIB) has been on a slash, surpassing Cardano to become the 10th largest crypto globally with a market cap of over $16 billion. SHIB’s price currently sits at $0.000028, up an impressive 5.26% in the last 24 hours, a drop from 16% in the same time frame and over 17% surge over the past 30 days.
SHIB Price Chart: CoinMarketCap
The recent rally may have been catalyzed by the U.S. SEC approving all Ethereum (ETH) exchange-traded funds (ETFs). As SHIB is an ERC-20 token built on the Ethereum blockchain, increased investor interest in Ethereum could be driving demand for the popular meme coin.
On-chain metrics and whale activity provide further bullish signals for SHIB. Over the past week, whale transaction counts have spiked during dips, indicating that institutional investors have been accumulating the token.
Source: Santiment
Also, the total number of SHIB holders continues to rise as well, reaching 1.39 million unique addresses, according to Santiment data. This consistent growth demonstrates an expanding adoption rate and positive market sentiment around the asset. Additionally, the total open interest in SHIB has rebounded from mid-April lows of $13 million to currently sitting at $45.8 million, confirming the bullish trend.
Source: Santiment
From a technical perspective, SHIB appears primed for further upside after breaking out of a multi-month descending triangle pattern on May 15th. If the 436% gain from January 23rd to the March 5th high of $0.00004575 is an indicator of how volatile this market can be, a 117% rally from current levels to the premium target of $0.00005 is a reasonable possibility.
SHIBUSD Daily Price Chart: TradingView
The daily money flow index reading of 72% shows significant bullish momentum building over the last 24 hours. While the MACD indicator is only slightly positive currently, suggesting bulls haven’t fully taken control yet, the RSI of 60 reflects an increasingly bullish trend.
Other on-chain data reinforces this technical outlook, as the SHIB long/short ratio chart from CoinGlass depicts a spike in long positions over the past several days. This escalating demand from bulls has been the driving force behind SHIB’s recent surge.
SHIB Long/Short Ratio: Coinglass
Potential for New Highs in June?
Analysts at Changelly predict SHIB could reach as high as $0.00002969 by May 31st and an impressive $0.00008373 by June 24th if the current momentum persists. While lofty, a return to the March 5th high of $0.00004575 seems quite realistic given SHIB’s historical volatility.
As the Shiba Inu frenzy continues to captivate crypto markets, all eyes will be on whether this rising meme star can solidify its place among the top 10 cryptocurrencies by market cap with a revolutionary new all-time high in the coming weeks.
