SHIB Poised for Bullish Breakout, Analysts Predict Major Upside
Shiba Inu (SHIB) is on the verge of a significant bullish breakout, with analysts pointing to multiple bullish patterns that could propel the altcoin to new heights.
According to a recent analysis by Ali Martinez, SHIB has formed a bull flag pattern on the 1-day chart, a highly bullish signal in technical analysis. If SHIB manages to break and hold above the $0.000025 resistance level, Martinez predicts a potential rally to $0.000037, representing a 54% increase from its current price.
Independent analyst Javon Marks is even more optimistic, noting that SHIB has already broken out of a multi-month falling wedge pattern. Marks forecasts a potential surge to $0.000081, which would mark a more than 200% increase from current levels.
As of Friday, Nov. 22, SHIB was trading at $0.000026, up 2.2% over the last day, with a market cap exceeding $14.5 billion. The meme coin has seen a remarkable 92% increase from its lowest point in August.
Catalysts Driving SHIB’s Momentum
Several bullish catalysts have contributed to SHIB’s recent rebound, including a substantial increase in token burns and heightened activity on the Shibarium network.
Recent data from Shiburn revealed a 2,200% spike in token burns, with over 14.58 million SHIB tokens removed from circulation. This has reduced the total circulating supply to 583.8 trillion tokens.
Additionally, the Shibarium network has experienced a surge in transactions, processing over 541 million transactions in recent months. The network’s growth is positive for SHIB, as transaction fees collected in BONE tokens are partially converted into SHIB and burned, further reducing the token supply.
Whale accumulation of SHIB has also increased, with large holders accumulating 393.48 billion tokens worth over $9.8 million. This uptick in accumulation suggests growing confidence in SHIB’s potential for upside.
Furthermore, SHIB’s rally could benefit from the ongoing surge in Bitcoin’s price, which has boosted overall market sentiment for altcoins. Bitcoin’s recent climb past $99,000 has contributed to a 5.3% rise in the total market capitalization of altcoins.
Technical Analysis and Outlook
On the 1-day SHIB/USDT chart, SHIB is trading above the 50-day and 200-day Moving Average Exponentials, indicating a strong bullish trend. The Relative Strength Index (RSI) at 59 suggests that there is still room for further gains, as SHIB has not yet reached overbought levels.
SHIB is also moving above the middle Bollinger Band, signaling increased buying pressure and a positive outlook for the coin’s recent rally.
With these bullish indicators in place, SHIB is likely to continue its upward trajectory, with the next potential target being the year-to-date high of $0.000036.