SHIB could rally over 50% if this happens: analyst

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As a seasoned analyst with over two decades of experience in the financial markets, I must admit that my skepticism has been piqued by the recent bullish predictions for Shiba Inu (SHIB). However, the data is undeniably compelling, and it would be remiss of me to ignore it.

Shiba Inu (SHIB) appears set to explode with significant bullish momentum, according to market analysts who have identified several positive indicators pointing towards an uptrend.

In a recent November 21st online post, Analyst Ali Martinez pointed out that Shiba Inu appears to have formed a ‘bull flag’ pattern on its daily chart. This pattern is often seen as very positive in technical analysis, and when it’s broken through, it usually results in significant short-term price increases.

According to Martinez’s forecast, Shiba Inu (SHIB) might soar up to $0.000037 if it manages to surpass and maintain its position above the resistance level of $0.000025. This potential increase represents a substantial jump of approximately 54% over its current price.

As an independent analyst myself, I’ve observed a particularly promising forecast for SHIB. Notably, it has managed to break free from a prolonged falling wedge formation, which is often seen as a robust bullish sign. Based on this pattern, I predict a potential surge toward $0.000081, marking an impressive jump of over 200% from the current price levels.

On Friday, November 22nd, Shiba Inu (SHIB), one of the largest meme-based cryptocurrencies, was trading at approximately 0.000026 USD, marking a 2.2% increase over the previous day. The market capitalization of this digital currency surpassed $14.5 billion. Since its lowest point in August, Shiba Inu has experienced an impressive growth of more than 92%.

Multiple catalysts at play

The bounce back in SHIB could be due to positive factors such as an increased rate of token destruction (burning) and a surge in transactions on the Shibarium platform, which have been noticeable during the last few months.

On Thursday, it was disclosed that there had been a massive surge of 2,200% in Shiba Inu token burns, amounting to 14.58 million tokens being taken out of circulation. This significant event increased the total burned tokens to more than 410.7 trillion, thereby decreasing the available supply to approximately 583.8 trillion.

One factor fueling Shiba Inu’s price increase is the escalation of transactions on Shibarium, its layer-2 blockchain. Recently, Shibarium has handled over 541 million transactions. The growth in this network is optimistic for SHIB, as transaction fees accrued in BONE tokens are partially converted into SHIB and destroyed, thereby reducing the supply.

There’s been a significant increase in the hoarding of SHIB tokens by large investors (whales) recently. As per IntoTheBlock’s data, the flow of these big holders soared by 256% on Thursday alone, with whales acquiring approximately 393.48 billion SHIB tokens valued at over $9.8 million. Contrastingly, a sell-off worth $6 million was observed the day before.

Additionally, Shiba Inu’s upward trend might receive an extra boost from Bitcoin‘s current uptrend, which is causing a ripple effect across the crypto market. The significant increase of Bitcoin beyond $99,000 has led to a 5.3% jump in the overall market capitalization of alternative cryptocurrencies.

SHIB isn’t overbought

On the one-day SHIB/USDT price graph, SHIB was found trading above both its 50-day and 200-day Moving Average Indicators, implying that the bullish momentum remains robust and could persist in the immediate future. The Relative Strength Index (RSI) stands at 59, indicating there’s potential for further growth as the meme coin hasn’t reached the oversold levels yet.

Shiba Inu (SHIB) was found climbing over its mid-level Bollinger Band, indicating a surge in purchasing activity that’s typically a favorable signal during this current upward trend.

Based on these positive signs, it seems reasonable to expect that SHIB’s upward trend may persist, potentially reaching a new peak around the current year-high value of approximately 0.000036 cents.

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2024-11-22 14:32