Shiba Inu price opened Thursday at $0.00002900, up 22% from Tuesday's 14-day low of $0.00002400. Shiba Inu's open interest increased by only 2%, indicating that the recovery is mainly due to spot purchases. Shiba Inu's funding rate has turned positive, increasing by 110% in the past 24 hours.
The price of the Shiba Inu has rebounded 22% from the 14-day low of $0.00002400 recorded during Tuesday's crypto market selloff. With the Ethereum ecosystem attracting rapid capital inflows, is SHIB on the verge of a big breakout?
Shiba Inu enters 22% rebound as Ethereum bull market regains momentum
Prior to the crypto market correction earlier this week, the Ethereum ecosystem received a major boost from significant policy changes proposed by the Trump Transition Committee.
Following the nomination of cryptocurrency-friendly Paul Atkins to replace outgoing Securities and Exchange Commission Chairman Gary Gensler, Bernstein analysts believe the incoming Trump administration will He indicated that he may approve staking yields for ETFs.
Within days of Bernstein's report, the Ethereum ETF recorded its highest single-day inflow of $428 million on December 2nd, pushing ETH price above the $4,000 level for the first time since November 2021. .
As has been observed historically, these unusually high ETH capital inflows quickly spread bullish tailwinds across prominent mega-cap tokens hosted within the Ethereum ecosystem, causing Shiba Inu prices alone to This caused PEPE's price to rise, reaching an all-time high on December 4th.
The recovery traction observed in the past 24 hours indicates a continuation of the bullish trend observed in the first week of December.
Shiba Inu Price (SHIB) vs Ethereum (ETH)
The chart above shows the close correlation between the recovery in SHIB price and the movement of market-leading Ethereum in recent days. Shiba Inu price rose 21.87%, rising from $0.00002700 to $0.00002900, while Ethereum price also rose 13.5%, retesting the $3,900 mark on Thursday. Derivatives traders bet big on SHIB breakout
As the largest meme coin hosted on the Ethereum blockchain, it appears that more SHIB stands to benefit further if ETH inflows continue ahead of President Trump's inauguration. Recent trends observed in the Shiba Inu derivatives market indicate that the majority of traders are currently placing large long bets in hopes of a continuation of the bullish trend.
In support of this stance, the Coinglass funding rate chart below tracks fees paid between bullish and short traders, showing the prevailing investor sentiment surrounding Shiba Inu's near-term price outlook. provides insight into.
Shiba Inu's funding rate and open interest rate.
The chart above highlights two major bullish signals from Shiba Inu derivatives traders. First, while SHIB price rose 21.9%, open interest increased by only 2%, from $102 million to $105 million. This indicates that the ongoing Shiba Inu price rebound is mainly driven by spot purchases with limited speculative activity in the derivatives market.
Over the same period, Shiba Inu's funding ratio reversed from -0.02 to a positive number of +0.02, representing an impressive 200% increase. The change reflects growing bullish sentiment among derivatives traders, with more traders paying a premium to hold long positions.
Taken together, these indicators indicate that Shiba Inu prices are poised to maintain their upward momentum if current market conditions continue.
Shiba Inu Price Prediction: Cautious Optimism as SHIB Aims for $0.000040 Breakout
After a 22% rebound, the Shiba Inu derivative market trend shows a further upward trend supported by key technical indicators.
The Bull Bear Power (BBP) indicator turned positive after three consecutive bearish sessions, indicating that buying momentum is returning.
Additionally, SHIB price rose above the midline of the Keltner channel, reflecting increased buying activity.
The bullish trend will further strengthen if the price closes above the midline level of $0.00002806.
The key resistance level near the Keltner upper band at $0.00003475 remains important.
Breaking this wall could trigger a broader rally and target the psychologically important level of $0.00004000.
Shiba Inu price prediction | SHIBUSDT (Binance)
On the other hand, if the rebound cannot be sustained, SHIB could retreat to the immediate support at the Keltner lower bound at $0.00002138. A decisive break below this level would invalidate the bullish outlook and expose SHIB to further correction.
The combination of positive sentiment in the derivatives market and increased spot buying indicated by technical signals could pave the way for SHIB to reach the breakout target of $0.00004,000.
