A recent rally after a bullish pattern breakout propelled Shiba Inu’s (SHIB) price to surge while registering double-digit gains over the last two weeks. Can the buyers capitalize on the recently gained momentum?

Key Takeaways:

• From a relatively long-term perspective, SHIB has chalked a bullish trendline support since the start of 2023.
• The meme coin has witnessed over a 40% ROI this year, with a corresponding spike in volume.

Technical Analysis: SHIB Glimpsed A Bullish Flag Breakout

• SHIB saw a concrete bullish rebuttal as it reversed from the $0.00000792 baseline support at the start of 2023. This buying comeback fetched a nearly 100% ROI until SHIB matched its six-month highs in February.
• Soon after, the bears reentered the market at the trendline resistance (white, dashed), forcing a downtrend on the chart.
• Empirically, buyers and sellers have clashed in the $0.00000973- $0.00001161 range as it represents a high liquidity region on the daily timeframe. As a result, this bearish decline faced resistance from the bulls as SHIB’s price reversed from the four-month trendline support (yellow, dashed).
• Consequently, the back and forth between the buyers and sellers in the high liquidity region induced a classic bullish flag setup on the daily chart. Often, such a pattern forces an upward move as buyers retaliate to regain momentum.
• The resulting upwards break led SHIB above the daily 20 EMA (red) and the 50 EMA (yellow) as the buyers reclaimed their edge in the short term.
• Now, the buyers should look for a potential evening star candlestick pattern. If the current candlestick closes below its previous two candles - it could confirm this pattern and a plausible near-term setback.
• On the other hand, the Relative Strength Index (RSI) oscillated above the 50-mark to reaffirm a short-term buying edge. Nonetheless, the index must find a close above the 61 resistance to avoid any immediate reversal chances.
• The Moving Average Convergence Divergence’s signal line (orange) and the MACD line (blue) finally jumped above the zero mark after nearly 40 days. SHIB witnessed a solid bull run on the charts the last time this happened.

SHIB On-Chain Analysis Overview

• Utilizing technical analysis and on-chain metrics provides a more holistic perspective, enabling investors to make more informed decisions by considering a broader range of market factors.
• The Daily Active Addresses is an essential on-chain metric, reflecting the number of unique addresses participating in transactions on a given day. It indicates user growth and network activity, which can impact the overall demand for the crypto asset.

• Interestingly, there has been a gradual downtrend in daily active addresses for the past 18 days. Despite this decline in on-chain activity, the price has been relatively increasing, suggesting a divergence between network usage and market sentiment.
• The funding rate is another critical metric, particularly for derivatives markets such as futures and perpetual contracts. It reflects the balance between long and short positions, helping to maintain market stability and providing insights into trader sentiment.

• SHIB's funding rate recently turned positive on nearly all top exchanges, following a gradual uptrend over the last two weeks. This shift indicates that traders holding long positions now pay those with short positions. This could signal a bullish market sentiment and affect the asset's future price direction.

Shiba Inu Price Prediction 2023

• Buyers should watch out for a potential validation or invalidation of the "evening star" candlestick pattern on the daily chart to gauge the chances of a potential rally.
• While the $0.00001161 resistance corroborates with the trendline resistance (white, dashed) and the possibility of a bearish candlestick pattern - a strong reversal can delay the chances of SHIB’s near-term recovery. In such a case, the $0.00000973 - $0.00000922 demand zone can offer rebounding opportunities for the meme coin.
• However, any close above the trendline resistance and the $0.000012 region can reignite the chances of an uptrend. With the funding rates marking an uptrend, an immediate recovery is not out of reach for the bulls. In this case, buyers would aim to retest the $0.000013-$0.000014 zone.
• Also, buyers should look for a potential golden or bullish crossover of the 20 EMA & the 50 EMA to confirm the bullish edge. Should any of these EMAs cross the daily 200 EMA, it would confirm a long-term buying edge.
• An eventual break above the $0.000014 barrier can carve a path toward the yearly highs of the $0.00002 mark in 2023.

Should You Invest In SHIB in 2023?

SHIB’s recent turnaround in 2023 has fetched a nearly 40% ROI this year. Technical analysis shows a bullish trendline support since 2023 and a bullish flag breakout, with the price now above the daily 20 and 50 EMA. Despite a downtrend in daily active addresses, the funding rate has turned positive on top exchanges, indicating bullish market sentiment.

Nonetheless, buyers should track Bitcoin’s movement before making any moves, as the meme coin shared a 72% 30-day correlation with the king coin.

Also, you can experience ultimate control with the Okto DeFi App, where you can securely keep your SHIB tokens and explore the finest DeFi prospects available on ShibaSwap. Additionally, the Okto application offers seamless access to ShibaSwap’s DeFi apps for a more versatile crypto experience.

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