Is SHIB targeting a trendline breakout rally? Check forecast

Key takeaways

• SHIB has reclaimed the $0.000010 level as meme coins rally higher
• The memecoin could rally to the 4-hour ILQ at $0.000011 in the near term.

SHIB trades above $0.000010 as memecoins rally

The cryptocurrency market is having a positive start to the week, with Bitcoin, Ether, and XRP all in the green. Leading memecoins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are regaining momentum and have recorded excellent gains over the last 24 hours. 

The rising retail interest in SHIB and other leading memecoins backs the short-term recovery, with the bulls expecting further gains. SHIB is currently the second-largest memecoin by market cap and is now trading above $0.000010 per coin.

According to CoinGlass, the futures Open Interest (OI) of DOGE, SHIB, and PEPE have increased by 4%, 2% and 3%, respectively, in the last 24 hours, reaching $1.53 billion, $72.99 million, and $200.53 million. This increase in existing futures contracts suggests that investors are increasing their exposure to SHIB and the other leading memecoins, expecting a rally in the near to medium term. 

SHIB eyes the $0.000011 liquidity zone

The SHIB/USD 4-hour chart is bearish and efficient despite Shiba Inu performing positively over the last seven days. The technical indicators on this timeframe have switched bullish, suggesting that buyers are currently in control.

The RSI of 58 is above the neutral 50, indicating a switch to the bullish trend on the 4-hour timeframe. The MACD lines are also within the positive zone, confirming the switch to a bullish bias a few days ago.

At press time, SHIB is trading at $0.000010, which is close to the 200-period EMA on the 4-hour price chart. The rising demand could see this experience a breakout rally over the next few hours or days. 

If the bulls keep SHIB’s price above the 200-period EMA at $0.00001029, it would confirm the trendline breakout. A bullish run would allow SHIB to grab the Inducement Liquidity (ILQ) at $0.00001175 in the near term. An extended rally would bring the TLQ and resistance level of $0.00001213 into focus. However, if the market reverses, SHIB could decline and retest the 50-period EMA at $0.00000971.