Home DeFi & NFT Rare Market Patterns Signal Potential 129% Surge for Shiba Inu (SHIB)

Rare Market Patterns Signal Potential 129% Surge for Shiba Inu (SHIB)

Shiba Inu

Shiba Inu (SHIB), a prominent cryptocurrency, is poised for a significant rally. Leveraging a rare convergence of market patterns, SHIB could see a 129% surge, potentially reclaiming its yearly peak of $0.000045. As the broader cryptocurrency market recovers, Shiba Inu has already shown impressive gains, making it the second biggest weekly gainer among the top 15 cryptocurrencies.

Current Market Recovery and Shiba Inu’s Performance

The cryptocurrency market is on an upward trajectory, with Bitcoin (BTC) nearing the $65,000 mark. Shiba Inu has capitalized on this market-wide recovery, gaining 19.68% in just seven days. However, despite this positive momentum, SHIB’s recovery has not been as robust as expected due to reduced market activity and investor interest.

Declining Market Activity Amidst Rebound

Shiba Inu’s current recovery campaign has faced challenges, primarily due to a noticeable decline in market activity. Despite the ongoing rebound, the interest in buying SHIB has been relatively low compared to previous uptrends. Market data indicates that SHIB’s 24-hour trading volume has been modest, averaging $262 million over the past week. This figure, although higher than during consolidation phases, falls short of the volume levels seen during significant uptrends.

For instance, during the previous uptrend in March that saw SHIB reach $0.000045, the trading volume averaged a staggering $7 billion. To replicate such a surge, Shiba Inu needs a substantial increase in trading activity and renewed investor interest.

The Need for Increased Volatility and Trading Activity

Shiba Inu requires a convergence of heightened trading activity and increased volatility to achieve a price pump similar to that in early March. During that period, the daily active addresses and daily volatility surged, leading to the significant price increase. Specifically, daily active addresses peaked at 42,334 on March 5, while volatility reached 0.1794, resulting in the spike to $0.000045.

Recently, data from Santiment revealed a spike in Shiba Inu’s volatility to a three-month high of 0.0574. However, this increase did not coincide with a rise in active addresses, which currently number just 3,974. Historically, significant price spikes in Shiba Inu occur when both volatility and active addresses increase together. This pattern was observed in May 2021, when SHIB surged to $0.00003, and in October 2021, during the climb to the all-time high of $0.00008845.

Resistance Levels and Potential for a 129% Increase

For Shiba Inu to continue its upward trajectory, it must navigate several resistance levels. Currently trading around $0.000019, SHIB aims to recover above $0.00002. According to data from IntoTheBlock, SHIB faces resistance between $0.00002 and $0.000025, where 97,160 addresses hold their tokens.

More substantial resistance lies between $0.000025 and $0.00003, and again between $0.00003 and $0.000036. These ranges represent Shiba Inu’s biggest resistance points, and breaching them could propel SHIB towards the weaker resistance at $0.000045. Achieving this would require a 129% increase from its current price.

Broader Market Influences

The broader cryptocurrency market has a significant influence on Shiba Inu’s price movements. Bitcoin’s recovery, nearing $65,000, plays a crucial role in bolstering market sentiment. Additionally, the recent political events involving former U.S. President Donald Trump have added a layer of complexity to market dynamics. Trump’s survival of an assassination attempt during a rally has led to speculation about his potential re-election, influencing both traditional and cryptocurrency markets.

Institutional Investment and Market Sentiment

Adding to the bullish sentiment is the influx of institutional investment in Bitcoin. On-chain analytics platform CryptoQuant reported that institutional investors have embarked on their “second-largest” accumulation spree of the year, purchasing over $5.8 billion worth of BTC in a single week. This wave of institutional buying highlights the growing acceptance of cryptocurrencies in mainstream financial portfolios and can indirectly boost confidence in altcoins like Shiba Inu.

Conclusion

Shiba Inu’s potential 129% surge hinges on a rare convergence of market patterns, increased trading activity, and heightened volatility. While the current market recovery has set a positive backdrop, SHIB’s journey to $0.000045 will require overcoming significant resistance levels and renewed investor interest. As the cryptocurrency market continues to evolve, Shiba Inu remains a token to watch, with its performance closely tied to broader market trends and institutional investment flows.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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