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- SHIB rose 12% in 24 hours, aiming to regain its April lows.
- Strong spot demand and bullish sentiment supported the rally.
Shiba Inu [SHIB] recorded a sharp rise on September 26th, registering a 12% rise, expanding the monthly recovery rate to 35%.
This amazing performance surpasses even Bitcoin [BTC]remained quiet overall, registering 2% on the daily chart.
However, SHIB's rally is retesting an important hurdle, which begs the question: Can the bulls move forward past the obstacle?
SHIB stands at a crossroads
Source: SHIB/USDT, TradingView
Stochastic RSI and RSI showed bullish signals on the daily chart, highlighting strong buying pressure on SHIB over the past few days.
However, it also indicates overbought conditions, which often indicates a possible price reversal. Given the bullish market structure, the uptrend momentum is likely to continue.
If so, late bulls could seek a re-entry after the breakout or retest the resistance at $0.000001763 (marked in white) or $0.000018 (April low).
A bullish target would be the 200-day moving average (MA) of $0.000020. A bullish target offers a potential profit of 15% or 11% based on two entry positions.
That said, the above bullish theory is invalidated if the daily candlestick drops below $0.000017. In such a calm scenario, SHIB could face a decline to $0.000015.
SHIB investors are in risk-on mode
Source: Coinglass
SHIB investors' risk-on mode further confirmed the common bullish thesis, as shown by two consecutive days of daily net inflows.
SHIB recorded net inflows of $9.1 million on Thursday, according to Coinglass data. Demand in the spot market was also strong on Wednesday, with daily inflows of $4.7 million.
SHIB could rise slightly if strong demand from the spot market persists.
Similar bullish sentiment extended to the derivatives side. In particular, open interest (OI) interest rates rose by 26%, with more short positions being liquidated than long positions.
read shiba inu [SHIB] Price prediction for 2024-2025
This showed that speculators in the futures market are expecting further price increases for SHIB.
Source: Coinglass
However, if the recent BTC rally reverses sharply, SHIB’s uptrend will stall and the bullish theory will be invalidated.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
