SHIB Bullish Divergence Signals Massive 234% Recovery Toward $0.000032

Key Indicators Pointing to a Trend Reversal

The technical indicators for Shiba Inu (SHIB) are exhibiting signs of waning downward momentum, suggesting a potential shift in market control and a change in direction. A multi-month bullish divergence has been observed, which is often an indicator that sellers are losing control and a significant trend reversal may be on the horizon. This divergence, where technical indicators move in the opposite direction of the price, typically develops towards the end of a downtrend's bottoming phase, attracting considerable interest from traders looking for confirmation of a larger recovery.

Bullish Divergence and Potential Rebound Targets

Crypto analyst Javon Marks has highlighted a distinct multi-month bullish divergence on the 2-Day timeframe for SHIB. While the price has recently made lower lows, the momentum line below the price chart has been printing higher lows. This divergence, the difference between two converging points on a graph, often precedes major reversal points as momentum turns before the market fully reacts.

This divergence suggests a potential upside movement for SHIB towards the $0.000032 area, which would represent an approximate 234% increase from its current trading price. This target zone is an area of previous support that later became resistance, providing a structural basis for a potential recovery. Historical patterns of accumulation phases followed by significant upward movements in SHIB indicate returning market demand, reinforcing the possibility of a price recovery. Traders are closely watching to see if buyers can successfully push SHIB above current resistance levels, which would confirm this setup and allow for a potential recovery back toward the predicted price target zone.

Derivatives Activity and Order Flow Support

Derivatives market activity indicates that traders are anticipating a significant shift. Open Interest (OI) has risen by 9.96% to $100.07 million, a common sign that participants are bracing for increased volatility and positioning themselves for potential breakouts. This rise in OI, occurring alongside the observed divergence, suggests that leveraged traders are attempting to capitalize on an anticipated upward move.

The growth in OI, coupled with increasing technical momentum and SHIB burnage, points to heightened participant engagement. However, this increased leverage also introduces the possibility of sharp liquidations if the price encounters resistance. The market's reaction at the next few key resistance levels will determine whether leverage further fuels upward momentum or leads to a negative turn in response to pullbacks.

Over the past three months, Taker Buy CVD has shown a consistent upward trend, indicating that buyers have been actively engaging and lifting offers across multiple trading sessions. This steady accumulation phase, supported by strong buyer interest during transition periods, is crucial for SHIB's early price movement.

At present, SHIB is positioned near a critical resistance level indicated by the liquidation heatmap, with the highest density concentrations between $0.0000084 and $0.0000087. A price move through this range could trigger liquidations of short positions, potentially accelerating upward movement. SHIB is also at a confluence point where order flow strength (CVD) is improving and divergence is occurring at a specific price level. This point could pave the way for an eventual price recovery toward $0.000032 if buyers maintain their pressure and successfully push through the current channel ceiling.