Popular dog-themed cryptocurrency Shiba Inu SHIB/USD is trading at one-month highs

SHIB soared over 14% in the last 24 hours to a market capitalization of over $9 billion.

Popular dog-themed cryptocurrency Shiba Inu (CRYPTO: SHIB) was trading at one-month highs on Wednesday morning amid a broader jump in risk-on sentiment for meme coins.

What Happened: SHIB soared over 14% in the last 24 hours to a market capitalization of over $9 billion.

The coin sailed to an intraday high of $0.00001561, a level last seen on Feb. 23, before reversing slightly due to profit-taking.

SHIB’s trading volume jumped 108% to $453 million, making it one of the most traded cryptocurrencies in the last 24 hours.

Whale interest in the coin soared, with large transactions valued at over $100,000 surging by 72% from the previous day, according to blockchain analytics firm IntoTheBlock.

The cryptocurrency's price chart showed that the total balance held by long-term holders rose 0.02% over the last 24 hours, suggesting that accumulation was going on.

Speculation also increased in the derivatives market. The open interest in SHIB futures contracts spiked 33% to levels last seen more than a month ago, as per Coinglass.

This meant more liquidity in the market and a potential for higher volatility in the days ahead.

Why It Matters: World Of Charts, a widely followed X (formerly Twitter) account dedicated to cryptocurrency analysis, noted SHIB’s attempts to break out of the descending channel pattern, projecting a twofold jump if it succeeded.

A descending channel is formed by two downward-sloping trendlines, indicating a bearish trend. However, a potential breakout from the upper trendline could signal a reversal.

$Shib #Shib Breaking Descending Channel Range, Successful Breakout Could Lead Solid Rally In Coming Days, Expecting 2x After Successful Breakout. pic.twitter.com/V0YNZAI80m

— World Of Charts (@WorldOfCharts) April 26, 2023

The overall meme coin market capitalization soared 10% to $59.11 billion in the last 24 hours, with other marquee coins such as Dogecoin (CRYPTO: DOGE) and Pepe (CRYPTO: PEPE) also netting returns of 10% and 15.20%, respectively, in the last 24 hours.

Price Action: At the time of writing, SHIB was exchanging hands at $0.00001540, up 14.30% over the last 24 hours, according to Benzinga Pro. Year-to-date, the meme coin has tanked 27%.