Shiba Inu Price Patterns Hint at a 50% Surge Amid Crypto Rally
Shiba Inu (SHIB), the second-largest meme coin, is showing signs of a potential 50% jump, fueled by rare bullish patterns and broader crypto market momentum. While recent struggles with its layer-2 network, Shibarium, have contributed to its underperformance, analysts suggest that SHIB could soon rebound, offering significant upside for investors.
Shiba Inu Price Analysis
Shiba Inu recently rose to $0.00002215, a 12% increase from its lowest swing this week, though it remains 33% below December highs. The meme coin has lagged behind newer entrants like Fartcoin and Dogwifhat, largely due to challenges surrounding Shibarium, its layer-2 network.
Shibarium’s network activity, while nearing 800 million transactions, has struggled with declining transaction fees. On Tuesday, the network collected just 640 BONE in fees, valued at less than $300. This dip in fee revenue has hindered SHIB token burns, a mechanism critical to reducing supply and driving up prices. Data from Shibburn reveals that the burn rate has been under pressure in recent weeks.
Market Sentiment and Catalysts
Despite these challenges, Shiba Inu may be poised for a comeback as the broader crypto market rallies. Bitcoin (BTC) approaches the critical $100,000 resistance level, supported by encouraging consumer inflation data. Additionally, anticipation around Donald Trump’s inauguration and Paul Atkins’ expected tenure at the Securities and Exchange Commission (SEC) is generating optimism for the crypto sector.
Rare Bullish Patterns in Shiba Inu Price
Technical analysis shows bullish signals forming on the SHIB price chart:
- Morning Star Candlestick Pattern: On Monday, SHIB formed a hammer or morning star candlestick, a pattern characterized by a long lower shadow and a small body. This is a classic reversal indicator, suggesting a potential upward move.
- Falling Wedge Pattern: SHIB has also formed a falling wedge pattern, defined by two converging downward trendlines. This pattern is widely regarded as a bullish reversal signal, often leading to breakouts as the trendlines converge.
- Bullish Divergence on RSI: The Relative Strength Index (RSI) has formed an ascending channel, signaling increasing momentum and strength despite the recent price dip.
Price Outlook and Key Levels to Watch
With these patterns in place, analysts forecast that Shiba Inu could rally to last year’s high of $0.000033, representing a 50% upside from current levels. However, this bullish scenario would be invalidated if the price falls below key support at $0.00001853, its December low.
Conclusion
As Shiba Inu navigates network challenges and capitalizes on broader crypto market optimism, technical indicators suggest a strong recovery is on the horizon. With potential upside fueled by rare bullish patterns, SHIB may reclaim its status as a leading contender in the meme coin space.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
