Shiba Inu Price Prediction: SHIB set for $0.00004000 breakout as ETH leads market recovery

• Shiba Inu price opened trading at $0.00002900 on Thursday, up 22% from the 14-day low of $0.00002400 on Tuesday. 
• Shiba Inu open interest has only increased by 2%, signalling the recovery is mainly driven by spot purchases. 
• The Shiba Inu funding rate has flipped positive, rising by 110% in the last 24 hours. 

Shiba Inu price has rebounded 22% from its 14-day low of $0.00002400 recorded during the crypto market dip on Tuesday. With the Ethereum ecosystem attracting rapid capital inflows, is SHIB on the verge of a major breakout? 

Shiba Inu enters 22% rebound as Ethereum bulls regain momentum 

Prior to the crypto market correction earlier this week, the Ethereum ecosystem had received a major boost from proposed vital policy changes by a Trump transition committee.

Following the nomination of crypto-friendly Paul Atkins as replacement for outgoing Securities & Exchange Commission (SEC) Chair Gary Gensler, Bernstein analysts hinted that the incoming Trump administration could approve staking yield for cryptocurrency ETFs. 

Within days of the Bernstein report, Ethereum ETFs pulled in their highest single-day inflow of $428 million on December 2, driving ETH prices to above the $4,000 mark for the first time since November 2021. 

As historically observed, these unusually high ETH capital inflows rapidly spread bullish tailwinds across prominent mega-cap tokens hosted within the Ethereum ecosystem, propelling Shiba Inu prices higher as well as PEPE, which raced to new all-time highs on December 4.  

The recovery traction observed in the last 24 hours signals the continuation of the bullish trend observed in the first week of December. 

Shiba Inu Price (SHIB) vs Ethereum (ETH)

The chart above shows a close correlation between SHIB price recovery and Ethereum’s market-leading movements in recent days. While Shiba Inu price gained 21.87%, moving from $0.00002700 to $0.00002900, Ethereum price also rose 13.5% to retest the $3,900 mark on Thursday. Derivatives traders place large bets on SHIB breakout 
As the largest memecoin hosted on the Ethereum blockchain, more SHIB appears positioned for more gains if the ETH inflows persist ahead of Trump’s inauguration. Recent trends observed in the Shiba Inu derivatives market shows the majority of traders are now placing large long bets, anticipating a continuation of the bullish trend. 

Affirming this stance, Coinglass’s funding rate chart below tracks the fees paid between bulls and short traders, providing insights on dominant investors’ sentiment surrounding Shiba Inu’s short-term price outlook. 
Shiba Inu Funding Rate vs Open Interest. 

The chart above highlights two key bullish signals from Shiba Inu derivatives traders. First, while SHIB prices surged 21.9%, the open interest increased by only 2%, rising modestly from $102 million to $105 million. This indicates that the ongoing Shiba Inu price rebound is largely driven by spot purchase with limited speculative activity in the derivatives market.

During the same period, Shiba Inu's funding rate flipped from -0.02 to positive readings of +0.02, representing a remarkable 200% increase. This shift reflects growing bullish sentiment among derivatives traders, with more traders paying premiums to maintain long positions. 

Together, these metrics suggest that Shiba Inu price is poised to sustain its upward momentum if current market conditions persist.

Shiba Inu Price Forecast: Cautious optimism as SHIB targets $0.000040 breakout

After a 22% rebound, Shiba Inu derivatives market trends signal more upside supported by key technical indicators. 

The Bull Bear Power (BBP) indicator flipped positive after three consecutive bearish trading sessions, signaling a resurgence of buying momentum.

Additionally, SHIB’s price has climbed above the midline of the Keltner Channels, reflecting rising buying activity.

A sustained close above $0.00002806, the midline level, would bolster bullish sentiment further.

Key resistance at $0.00003475, near the Keltner upper band, remains pivotal. 

Breaking this barrier could trigger a broader rally, potentially targeting $0.00004000, a psychologically significant level.

Shiba Inu Price Forecast | SHIBUSDT (Binance)

On the flip side, failure to sustain the rebound could see SHIB retreat to its immediate support at $0.00002138, the lower Keltner boundary. A decisive breach below this level would invalidate the bullish outlook, exposing SHIB to a deeper correction.

A confluence of positive sentiment in the derivatives markets and rising spot purchases indicated by the technical signals could pave the way for SHIB to reach its $0.00004000 breakout target.

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