Shiba Inu (SHIB) Gains Attention Amid Potential Breakout
Shiba Inu (SHIB), the second-biggest memecoin by market cap, is gaining attention due to its price formation. Market analysts have pointed out a potential breakout that could see SHIB rally 17 times from current levels.
Analyst’s Bold SHIB Prediction
The memecoin market is experiencing renewed momentum, following in the footsteps of top cryptocurrencies like Bitcoin (BTC). Recent data from CoinGecko reveals that the total memecoin market cap rose 4.9% to $51 billion over the past 24 hours. However, SHIB is yet to benefit from the uptrend, declining by 1.37% to $0.0000125 at press time.
Despite the dwindling momentum, top market analyst, CryptoELITES on X, is optimistic about SHIB’s future trajectory. The analyst claims SHIB could easily rally 17 times from its current price levels.
Image Source: CryptoELITES on X
According to the CryptoELITES, SHIB has entered a strong “buy zone,” meaning a breakout is on the horizon. A surge in demand at this level is a major factor in fueling this move. Notably, a 17x increase from its current price of $0.0000125 would lead to SHIB surging to $0.00021. However, for this bullish thesis to hold, SHIB’s price would have to defend support at the lower descending trendline. SHIB’s ability to flip resistance at the 0.618 Fibonacci level of $0.00003 will confirm the upward rally. This flipping will set the stage for a rally above $0.000085, after which the memecoin can erase one zero.
The memecoin might face a supply squeeze if demand rises after Shiba Inu enters this buy zone. As revealed by the on-chain data analytics platform, Santiment, the amount of SHIB supply in exchanges has plummeted to record lows. The high demand and low supply support the bullish price prediction about SHIB hitting a new all-time high.
Technical Indicators Align
A recent technical TradingView chart has also pointed to a positive shift in momentum for the top memecoin. The chart shows that the daily chart’s Simple Moving Average (SMA) is heading towards a bullish crossover. This is usually a common precursor to upward movement.
Also, the Relative Strength Index (RSI) indicator is above the neutral 50 mark and is climbing toward the overbought zone, indicating rising demand and bullish pressure. These signals suggest that investors have begun to accumulate SHIB again. Hence, the memecoin is about entering a new phase of upward price action.
Moreover, Shiba Inu trading volume has increased by more than 4% to $148.4 million. The increase in SHIB volume is likely due to investors buying the dip as its price fell to recent lows. Traders are presumably scrambling to capitalize on the opportunity given by the recent dip to buy at a discount. Their action suggests confidence in SHIB’s future price trajectory.
Besides CryptoELITES, other market analysts have made bold SHIB forecasts. In a previous article, we discussed, analysts predicted that SHIB could rally as high as 550%. Others estimate SHIB’s value could surge to $0.000167. As mentioned in our previous news brief, they cited factors including SHIB burn rate, Shibarium expansion, and exchange dominance to fuel the future rally.