Shiba Inu (SHIB) Price Flashes $29M Bullish Signal after 14-Day Consolidation

Shiba Inu Price Analysis:

Shiba Inu price is hovering just above the $0.000013 area on Aug 19, having spent the last two weeks in a consolidation phase. Rising capital inflows in the derivatives markets suggest SHIB could be on the verge of a bullish breakout.

SHIB Price Posts 2-Week Consolidation

Over the past two weeks, Shiba Inu’s price has decoupled from the broader crypto market trends, trading in a narrow range around $0.000013. While major cryptocurrencies like Bitcoin and XRP have surged, SHIB has remained stagnant, signaling potential internal bearish catalysts.

This divergence can be attributed to shifting investor focus towards mega-cap assets due to an improved regulatory landscape.

Recent developments such as the approval of Solana ETFs in Brazil, the launch of Ethereum ETFs, and Ripple’s positive ruling in its case against the SEC have led investors to favor large-cap assets, leaving the memecoin sector, including SHIB, struggling for traction.

The chart comparison of SHIB and price growth a clear performance disparity. While XRP has surged by 35% since August 5, Shiba Inu has only managed a 24.45% recovery from the market crash.

This underperformance relative to the broader market trend highlights the internal challenges SHIB faces, reinforcing the notion that traders are diverting their attention from memecoins to more established assets.

However, despite this period of consolidation below $0.000015, derivatives market data suggest that SHIB could soon be on the verge of breaking out of its 14-day consolidation phase.

Shiba Inu Open Interest Surges to $30M amid Price Dip

As SHIB’s price stagnates, falling behind the market, its open interest has been rising, indicating that the asset may now be undervalued. Open interest, which measures the total number of outstanding futures contracts, is a key indicator of trader sentiment and market activity.

The Coinglass chart shows that SHIB’s open interest has increased from $21.11 million on August 8 to $29.07 million on August 19, representing a 37.7% surge over the last 10 days. Meanwhile, during this period, SHIB’s price has only increased by less than 5%.

This divergence between Shiba Inu price and its open interest suggests that speculative traders are making strategic capital inflows during this consolidation period, likely anticipating a breakout.

Historically, when open interest outpaces price growth during a consolidation, it often precedes a significant price movement. This bullish divergence between price and open interest indicates that traders may be positioning themselves for a potential upside in SHIB.

Given the historical context and current market data, SHIB could be poised for a bullish breakout in the coming week, as traders anticipate a reversal of its recent underperformance.

SHIB Price Forecast: $0.000015 Could Catalyze Larger Gains

If SHIB can break through the $0.000015 resistance level, it could catalyze larger gains, potentially driving the price towards $0.000017. The Parabolic SAR and Donchian Channel indicators on the TradingView chart suggest that SHIB is building up momentum for an upward move.

The Parabolic SAR dots are hovering above the price, indicating a possible reversal in the near term. If SHIB can maintain support at the $0.000013 level and break above the $0.000015 resistance, it could trigger a stronger rally, targeting the $0.000017 level as the next major resistance.

Conversely, if SHIB fails to hold above $0.000013, the next support level to watch would be $0.000011.

Overall, while SHIB has lagged behind in recent weeks, the current technical setup and rising open interest suggest that a bullish breakout could be imminent, with the $0.000015 level serving as a critical catalyst for future gains.