Shiba Inu (SHIB) experienced a notable boost last week, driven by a broader crypto market rally spearheaded by Bitcoin and Ethereum.
At press time, the second-largest meme token was trading at $0.00001697, reflecting a 3.26% increase over the last 24 hours. This price surge coincided with a significant rise in trading volume, which soared by 38.30%, reaching $279 million during the same period.
This renewed momentum has sparked optimism among analysts, with some predicting substantial price increases for SHIB. Renowned technical analyst Javon Marks recently suggested that SHIB could potentially rise five to six times its current value.
Marks’ analysis centers on SHIB’s price movement within a “Falling Wedge” pattern observed on the daily chart, a formation often seen as a bullish reversal signal. According to Marks, SHIB is approaching a critical point where this pattern could break out, signaling a significant upward trend.
“SHIB (Shiba Inu)’s ≈6X: Prices of Shiba are currently nearing the converging or breakout point of a massive Falling Wedge pattern on the daily (1d Chart)…this can be pointing to a bullish breakout!” Marks stated.
Marks also highlighted the presence of a Regular Bullish Divergence, where the price action diverges from a momentum indicator, further strengthening the case for an impending breakout. He predicted that these technical indicators could trigger “the next phase of heavy bullishness” for SHIB, with an initial price target of $0.000081, reflecting a 498% surge.
Notably, this anticipated breakout aligns with growing interest in SHIB among crypto investors. According to data from CryptoQuant, there has been a significant trend of SHIB withdrawals from exchanges, with 22.67 trillion SHIB, valued at approximately $310.79 million, withdrawn since January 1, 2024.
This anticipated breakout coincides with a rising interest in SHIB among crypto investors. CryptoQuant data reveals a notable trend of SHIB withdrawals from exchanges, with 22.67 trillion SHIB, worth approximately $310.79 million, being withdrawn since January 1, 2024.
However, amid these optimistic outlooks, caution should be exercised. Notably, SHIB is currently experiencing a notable drop in whale activity, with only 16 large transactions involving 392 billion SHIB recorded in the past 24 hours, which is significant compared to previous activity levels. This suggests that major investors may be losing interest in SHIB, raising concerns about its future.
Additional analysis from IntoTheBlock indicates that only 45% of SHIB holders are in profit, while 53% are at a loss, diminishing confidence in the token’s potential. Moreover, the current sentiment index reveals that most traders are bearish on SHIB, with the indicator reading 3 (bearish) and 0 (bullish). However, some analysts interpret this extreme negativity as a potential signal of forthcoming strength.
