SHIB Price Eyes Breakout, Clears Resistance as Short Liquidations Surge

Key Insights:

• SHIB price clears long-term resistance, signaling a potential bullish trend reversal.
• Short liquidations surge as bullish momentum forces bears to cover.
• Strong support zone suggests SHIB may be primed for a rally.

SHIB price is showing good bull momentum following the break of an important resistance level. It has regained long-term support, which could be attributed to the recent change in the tone of the market. Moreover, short liquidations have been on a spree due to the surge, as further short positions get squeezed. That’s due to the pressure that is building up.

SHIB Price Breaks Long-Term Downtrend

Daily charts show that the SHIB price has broken out from a long-term downtrend. The chart demonstrates an evident change in the structure of the market, as SHIB broke a significant line of resistance.

This action represents the first actual break in trend direction since the downtrend commenced earlier this year. It indicates that the downward trend in price might just have ended its cycle.

The rally above the resistance indicates that SHIB is currently targeting higher prices. This thereby potentially provides an opportunity for traders to make high profits.

The trend reversal has been generalized with a firm basis of consolidation at the critical levels of support. It makes the target potential of a parabolic move in case the levels hold.

Shiba Inu Faces Short Liquidations and Increased Buying Pressure

SHIB’s Liquidation spike is another factor confirming the bullish run experienced in the SHIB price. Short sellers who were selling SHIB on the expectation that the price would fall further had to buy out their positions as the price breached its key resistance point.

This further resulted in the marked increase of liquidations, which is the typical sign of such extreme bull runs. Short holders were swept by having to cover their positions and exerting additional upside pressure.

The total liquidations chart indicates that the number of both short and long liquidations has increased significantly over the past few weeks.

Although long liquidations have seen a rather stagnant period, the spikes in short liquidations have been rather sharp. It indicates a change in market behavior.

Such a tightening is further compounded by the increasing pressure to purchase the market run-up by market players seeking to ride on the breakout.

SHIB Price Rising as It Approaches Key Resistance

SHIB Price has successfully risen above the 0.00001444 resistance line, which acted as a significant resistance in the past. 4-hour charts show that the meme coin’s price is currently trying to move upward. The first significant resistance area for SHIB could be around the $0.0000150 level.

The Awesome Oscillator (AO) and MFI indicators also support the bullish trend. The current trend of the MFI has breached the 70 mark, which reflects that the SHIB is gaining an overbought status.

However, it does not imply that there will be an imminent reversal. The AO has been gaining buyer momentum as more and more green bars are observed, which points to the strengthening trend.

All these factors combined imply that if SHIB price maintains the zone, it might enter a parabolic bull run.

The historical price action is also supportive of the bullish momentum. This is due to the fact that when a token breaks an important resistance and consolidates above it, the next step tends to be an abrupt speeding up of the price movement.

Considering the number of liquidations and the growth in purchasing volume, SHIB price has a significant potential of breaking through.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.