Shiba Inu [SHIB] experienced renewed buying interest after breaking out of its bullish pennant structure on October 28. This bullish volatile break pushed the meme-token into its high liquidity zone near the Point of Control (POC, red) in the $0.01239-area. (From now on, SHIB prices are multiplied by 1,000 for brevity.)
On its charts, the recent bullish pattern’s breakout paved the way for impressive daily gains. Any reversal from the $0.013 level could help sellers relieve the increased buying pressure.
SHIB was trading at $0.01292 at press time, up 7.93% in the previous 24 hours.
SHIB’s breakout flipped the 20 EMA to immediate support
Source: TradingView, SHIB/USD
The meme token’s jump above the $0.01014-mark affirmed the end of its compression phase as the buyers propelled a volatile break above the 20 EMA red), 50 EMA (cyan), and 200 EMA (green).
SHIB’s recent revival chalked out a bullish flag on the four-hour timeframe. After a firm rejection of lower prices near the 20 EMA, the pattern saw an expected breakout that expedited the buying pressure.
While the 20/50/200 EMAs looked north after the golden cross, the buyers could continue to control the near-term trend. A rebound from the $0.013-region could halt the streak of the green candles. In this case, the $0.01232-mark could be the first major support level for the sellers to test.
An immediate or eventual close above the $0.0133-mark can induce a short-term upside for the token. In such circumstances, SHIB could witness a bearish invalidation and aim to retest the $0.01416 ceiling.
Furthermore, the Relative Strength Index (RSI) bounced back from the 50-mark to depict a strong buying vigor. Also, the recent green candlesticks entailed high volumes and revealed the underlying bullish sentiment. The buyers should look for a strong reversal on the RSI to gauge the chances of a bullish invalidation.
A spike in Open Interest alongside the price
Source: Coinglass
An analysis of the total SHIB Futures Open Interest revealed an impressive 14% jump in Open Interest over the last 24 hours. Correspondingly the price action witnessed over 7% gains during the same time. This reading entailed a bullish sign for the near term.
Should the buyers capitalize on this, any break above the immediate resistance range could position the token for a bull run.
Also, the alt shared an 84% 30-day correlation with Bitcoin. Thus, keeping an eye on Bitcoin’s movement with the overall market sentiment could be essential to identify any bullish invalidations.
