Shiba Inu records strong bullish price action as demand rises

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• Shiba Inu bulls made a compelling case for further gains for the meme coin after the recent rally.
• A weak Bitcoin or volatility on Monday could negatively impact Shiba Inu’s momentum.

Shiba Inu [SHIB] noticed major bullish moves on the price chart in recent days. Measured from recent lows at $0.0000076, Shiba Inu is up nearly 14% over the past six days. This was impressive considering Bitcoin’s [BTC] lackluster price action over the past week.

Read Shiba Inus [SHIB] Price Forecast 2023-24

However, traders should be careful. The highs and lows of Monday, July 31, could set the significant levels for next week. The monthly candle was also about to close, which could lead to further volatility in the market.

The high volume bullish structure break showed that buyers had strong momentum

Source: SHIB/USDT on TradingView

On the 1-day chart, the trend was not yet bullish, but the structure turned bullish after the June rally, reaching $0.00000846 on June 22. The past month saw SHIB prices bounce back into the $0.0000007 support zone.

On the 4-hour chart above, the consolidation and gradual rise over the past month led to a major northward move on July 28. The market structure shifted bullishly on the H4 chart accompanied by a large fair value gap.

This showed bulls were in control, followed by a lower pullback over time to the $0.0000082 region. The RSI was above 70 showing significant bullish momentum and the CMF at +0.22 showed significant capital flow into the Shiba Inu market.

Open Interest trended higher alongside prices

Source: Coin analysis

The breakout past the local resistance area on July 28 was accompanied by increased trading volume on the 4-hour price chart.

Realistic or not, here is SHIB’s market cap in terms of BTC

Coinalyze’s 1-hour chart showed that the Open Interest also saw a huge increase, rising from $40 million to $60 million and rising. This was a sign of bullish conviction from SHIB speculators.

In addition to demand, the breakout was also fueled by the short liquidations as seen on the liquidation chart. Therefore, buyers can use the $0.0000082 zone as a marker – a move below this region would indicate near-term bearishness.