Shiba Inu (SHIB) has garnered attention from market analysts who believe the meme-inspired cryptocurrency could see a significant price surge of up to 260% in the coming months. After experiencing a notable decline of over 37% from its December highs, SHIB is showing signs of potential recovery, with key developments fueling optimism in the market.
Whale Activity Stirs Market Speculation
A major transaction involving a Shiba Inu whale has heightened expectations for a price rally. A dormant wallet, inactive for the past five months, recently withdrew 220 billion SHIB tokens worth $4.63 million from Binance. This sizable withdrawal, following a period of consolidation for SHIB, has sparked speculation about an impending price movement.
Resistance Levels and Sell Walls
Despite these promising signs, Shiba Inu is facing significant resistance at crucial price levels. According to data from IntoTheBlock, two substantial sell walls are blocking the token from pushing past the $0.00003 mark. The first resistance zone, between $0.000023 and $0.000024, contains 42,310 addresses holding 60.44 trillion SHIB tokens. A larger resistance zone lies between $0.000024 and $0.000030, where 208,010 addresses hold 70.35 trillion SHIB.
These sell walls have repeatedly caused pullbacks in SHIB’s price, hindering its recovery from previous declines. The ability to break through these levels will be crucial for any sustained bullish movement.
Consolidation Phase Signals Potential Breakout
Following a period of volatility, Shiba Inu has entered a consolidation phase, trading within a narrow range between $0.00002100 and $0.00002300. Analysts view this as a potentially bullish setup, especially in light of the recent uptick in SHIB’s burn rate. The token’s current price action aligns with technical indicators, which suggest that SHIB has found support around $0.00002—an important level that has prevented further declines.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are signaling a potential shift toward a bullish trend, with RSI currently at 56.81, showing a neutral to slightly bullish outlook.
Analyst’s 260% Price Prediction
Crypto analyst Javon Marks has pointed to “textbook bull signals” in SHIB’s price chart, predicting a potential rally of 260% to $0.000081. Marks highlights a key technical breakout, where SHIB recently surpassed a long-term resistance trendline and tested it as support during its pullback. This type of price action often signals the start of an upward trend.
Marks also noted the presence of “hidden bullish divergence,” where SHIB’s price forms higher lows while momentum indicators show lower lows. This pattern indicates that SHIB’s underlying strength may be stronger than the recent price action suggests.
To sustain this bullish momentum, SHIB must overcome two major resistance zones. The first target is $0.00003, a level where the token has faced selling pressure in the past. If SHIB can break through this barrier, analysts believe it could reach $0.000081, a key resistance level that would mark a 260% gain from current levels.
Long-Term Target of $0.000155
Marks also pointed to a more ambitious long-term target of $0.000155 for Shiba Inu, a price level that would represent an all-time high for the token. This target, while challenging, is seen as achievable if broader market conditions improve and bullish trends return to the cryptocurrency market.
As Shiba Inu continues to face both challenges and opportunities, all eyes are on the upcoming weeks to see whether the predictions of a 260% rally materialize.
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