SHIB Looks Ready to Break Resistance. Time to Buy?

After grinding through weeks of low volatility, Shiba Inu price has come alive with a sharp upward move. The recent surge has grabbed attention, but now the price is pressing against a tough ceiling. This article unpacks what the chart says, what traders should expect next, and how much room there is to rally or fall.

Shiba Inu Price Prediction: Is SHIB Derivatives Activity Signaling a Bigger Move Ahead?

1000SHIB Futures Open Interest (USD): Image Source: Coinglass

Shiba Inu’s derivatives market is catching fire, and that might be a key clue for what comes next. Open interest in Binance’s 1000SHIB futures has surged over 39 percent this month, climbing to 5.11 billion SHIB. 

That is the highest level since early December. The sharp rise in open positions signals fresh capital entering the market, likely from traders rotating out of Bitcoin into more speculative altcoins like SHIB.

These futures contracts offer up to 25 times leverage, giving traders the ability to control large positions with relatively small amounts of capital. The catch is that such aggressive exposure often leads to sharp swings. 

With increased leverage, even minor price changes can trigger liquidations, where exchanges forcibly close positions. This can amplify price movements in both directions.

On-chain signals are also pointing in a bullish direction. Over 100 million SHIB tokens were burned in a single session, with the burn rate spiking by more than 3600 percent. Exchange inventories have dropped to a yearly low of 1.14 billion dollars worth of SHIB. This reduction in available supply often limits selling pressure, which favors price appreciation during upward moves.

Volume also tells a story. A spike to 1.394 trillion tokens traded during the early phase of the rally surpassed the 24-hour average. Since then, volume has tapered off, but not in a bearish way. 

Instead, we are seeing a consolidation with lower volume, which is often a sign of accumulation. At the same time, SHIB price has been forming a series of higher lows, suggesting that buyers are gradually stepping in with more confidence.

What Are the Charts Signaling Right Now?

SHIB/USD Daily Chart- TradingView

The surge in SHIB derivatives activity is not just noise in the futures market. It has a direct impact on the spot price because leveraged trading often drives short-term price action. 

When open interest climbs rapidly, as it has this month, it reflects heightened trader expectations and increases the likelihood of larger, faster moves. This creates a feedback loop. As SHIB price edges higher, more traders pile in with leverage, which fuels additional price momentum. 

On the flip side, if price falters near resistance, it can trigger mass liquidations that accelerate a drop. In SHIB’s case, the sharp increase in futures exposure, combined with a reduced supply on exchanges and a spiking burn rate, creates ideal conditions for a breakout or breakdown. 

This correlation between derivatives buildup and spot Shiba Inu price volatility is why SHIB traders need to pay close attention to both markets. This is a daily Heikin Ashi chart with Bollinger Bands, pivot levels, and Fibonacci retracement levels plotted.

SHIB price broke out from the 0.00001100 base and rallied close to 40 percent, pushing into the upper Bollinger Band. Price is now sitting at 0.00001526, right at a key resistance that includes the R3 pivot level. That area is historically tough to break on the first try.

Looking at the Fibonacci retracement from the swing low, the 0.618 level sits at 0.00001370. That lines up with R1, suggesting this could act as a solid pullback zone if the current rally stalls. The 20-day SMA is trending higher near 0.00001348, which reinforces the support zone just below.

What’s the Upside vs Downside From Here?

Let’s break it down numerically.

If SHIB breaks and holds above 0.00001560, there is room to move toward the 0.00001700 to 0.00001800 range. That represents about 18 percent upside from current levels.

On the flip side, if the breakout fails, price could revisit the 0.00001370 to 0.00001300 support band. That would imply a 15 percent drop.

From a risk-reward perspective, you are looking at roughly 1 to 1.2 in favor of upside. Not massive, but worth watching if volume confirms.

Shiba Inu Price Prediction: This Is the Pivot Point

Shiba Inu price is sitting on a pressure point. A clean breakout above the 0.00001560 region could trigger a new leg higher. Failure to break convincingly will likely bring a short-term correction to 0.00001370.

Traders should stay alert. Watch for volume confirmation. Avoid entering in the middle of indecision. Let price show its hand first. If it breaks, there is opportunity. If not, patience wins.

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