Shiba Inu Price Eyes $0.000020 Breakout as Elon Musk Promotes DOGE at Trump Rally

Shiba Inu Price Analysis:

Shiba Inu price consolidated below $0.000019 level on Friday Oct 18, up 17% this week. While Elon Musk’s mention of Dogecoin at a Trump rally has propelled DOGE into 30% weekly timeframe gains, derivatives market data trends, suggests SHIB could soon join the uptrend.

Shiba Inu Tests $0.000020 Breakout amid Dogecoin Rally

The global memecoin market has been on a tear this week as positive macroeconomic indicators spurred high-risk trading activity among crypto investors. While legacy memes Shiba Inu and Dogecoin scored double-digit gains, Solana memes like POPCAT, and WIF also delivered  considerable gains.

Notably, the global memecoin rally entered second-gear on October 17 after Elon Musk mentioned Dogecoin during Donald Trump’s campaign trail.

Speaking at a Trump rally on Oct 17, Elon Musk made bullish statements inferring that DOGE could potentially fix inefficiencies in US government spending.

This comes just days after Elon Musk’s EV maker Tesla had launched a new line of fully-autonomous vehicles and AI personal assistant, sparking speculations the DOGE could be integrated to power payments between those devices.

According to Polymarkets data, Donald Trump has emerged the overwhelming favorite candidate to win the November 2024 elections among cryptocurrency bettors. This explains why Elon Musk ‘DOGE’ mention sparked a major rally across the crypto markets, with Dogecoin leading the charge.

At the time of writing on Oct 18, Dogecoin has reached a new monthly peak of $0.14 reflecting 30% within the 7-day timeframe.

Meanwhile, SHIBUSD daily chart highlighted in green above also depicts a sizeable 17% gains as Shiba Inu prices rose to $0.000019 level at the time of publication.

SHIB Traders Raises LONG Leverage to 20-Day Peak

Evidently, the SHIB price rally is evident lagging behind Dogecoin’s gains this week. However, a closer look at the underlying on-chain data trends suggests Shiba Inu bull traders are making strategic moves that could potentially trigger similar SHIB price breakout  in the days ahead.

The Coinglass charts below depicts how Shiba Inu’s open interest and funding rate trends, showing how SHIB speculative traders have reacted to Elon Musk’s positive mentions DOGE coin in the last 48 hours.

First, SHIB Open interest has increased from $48.22 million on Oct 16 to hit $55.26 million at the time of publication on Friday Oct 18. Likewise, the SHIB funding rate surged to 0.018%, its highest in 20-days dating back to Sept 28.

Typically, when an asset’s open interest and funding rates rise simultaneously, strategic investors interpret this as a bullish signal for two key reasons.

• Heightened Demand: First, an increase in both open interest and funding rates signals that traders are actively entering new positions, expecting a price increase.In this case, the spike in SHIB’s open interest suggests a surge in buying activity likely fueled by Elon Musk’s positive mentions of Dogecoin.

Given SHIB’s historical correlation with DOGE, this optimism likely spilled over into SHIB, triggering more traders to engage.

• Confidence in Sustained Upward Momentum: Secondly, a rising funding rate indicates that long positions are willing to pay a premium to hold onto their trades. This suggests that the majority of traders are betting on further upside, reflecting market-wide confidence in sustained upward momentum.

In SHIB’s case, the surge in funding rates reinforces the bullish sentiment and underscores expectations that prices may continue to rise in the short term.

These combined signals suggest that SHIB could experience further gains as long as market enthusiasm holds, particularly if DOGE continues to perform well in the wake of Elon Musk’s bullish mentions.

Shiba Inu Price Forecast: Elon Musk’s DOGE Mentions Could Drive SHIB above $0.000020

As Shiba Inu price approaches the crucial $0.000020 resistance, the increase in capital inflows towards the SHIB futures markets amid Elon Musk’s DOGE mentions could provide much-needed support for a sustained breakout.

Technical indicators on the SHIBUSD chart below also affirm this optimistic stance. complete the TA part expertly, be emphatic, and coherent with the narrative.

Over the last 3-days SHIB’s price has been consolidating within a narrow range between $0.000017 to $0.000019, poised for a breakout as the Parabolic SAR dots move beneath the daily timeframe candlestick. This typically signals a bullish reversal, suggesting that buyers are beginning to regain control of market momentum.

Although SHIB’s price has retraced slightly from its recent rally but remains above the pivotal 50% Fibonacci retracement level at $0.00001719, indicating that the bulls have not lost their grip.  Holding above this level should give traders confidence to push prices higher, especially as Elon Musk’s continued influence on the memecoin market is evident with his DOGE mentions sparking broader interest.

Two key resistance levels to monitor are the $0.000020 psychological barrier, which aligns with the 100% Fibonacci extension, and $0.00002205, the first pivot resistance (R1). A decisive close above $0.000020 could open the door for a rapid surge toward $0.00002205.

On the downside, the 50% Fibonacci level at $0.00001719 provides critical support. A breach of this level may lead SHIB toward the 61.8% Fibonacci retracement at $0.00001563, where the Parabolic SAR dots are currently providing additional support.