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Shiba Inu price rose for four consecutive days as it continued to underperform Dogecoin, the biggest meme coin in the industry. SHIB was trading at $0.000028 on Sunday, a few points below this month’s high of $0.000030. It has risen by 145% from its August lows.
Shiba Inu price could explode higher soon
Technicals suggest that the Shiba Inu coin could be about to explode higher in the past few days. On the daily chart, we see that the coin is hovering at the 50% Fibonacci Retracement level. Also, the coin has formed a cup and handle pattern, a popular bullish sign. The upper side of the cup is at $0.000030, which it needs to clear in the coming days.Shiba Inu token has also formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other. This pattern happened on October 31 and the coin has already jumped by 56% since then.The last time Shiba Inu formed a golden cross was in October last year and it then jumped to the year-to-date high of $0.000045.Meanwhile, oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued rising. The MACD is stuck above the zero line, while the RSI is nearing the overbought point at 70.Going back to the cup and handle, we see that its depth was about 185%. As such, if we add that amount to the upper side of the cup at $0.000030, we can assume that the coin will soar to $0.000085. (Click on image to enlarge)
The bullish case will be invalidated if the coin drops below the key support level at $0.000020. A drop below that level will raise the chances of the coin falling to $0.000010.Analysts believe that the Shiba Inu price will do well in the near term. In a recent X post, an analyst known as that SHIB was mirroring that of Dogecoin, which has gone parabolic in the past few months.
#ShibaInu $SHIB looks like #Dogecoin $DOGE! If true, $0.00049 next! pic.twitter.com/MsNYhh3bNi
— Ali (@ali_charts) November 21, 2024
Shiba Inu’s potential catalysts
There are several potential catalysts for the Shiba Inu price. First, it could benefit from the ongoing crypto bull run that has pushed Bitcoin close to $100,000. BTC has spent 16 years to get to $100,000, and analysts believe that it will spend a smaller period to get to $200,000. In most periods, meme coins like Shiba Inu do well when Bitcoin is soaring. Second, the Shiba Inu burn rate is still quite strong even after it dropped by 98% in the last 24 hours. Over 410 trillion Shiba Inu coins have been incinerated in the past few years, a trend that will certainly continue in the coming years.A token burn is a situation where existing coins are moved to a wallet without a key, and is one of the top ways that cryptocurrencies create value. The goal is to reduce the amount of coins and making it deflationary.Shiba Inu burns its tokens in a number of ways. For example, some of the BONE fees made in Shibarium are transformed into SHIB and burned. Data shows that Shibarium has processed over 550 million transactions as the number of addresses rose to 1.9 million. The other Shiba Inu burns come from voluntary sellers and from ShibaSwap, its DEX network that has over $25 million in assets.From a macro level, the coin will benefit from the ongoing Federal Reserve interest rate cuts and the potential friendly regulations in the incoming Donald Trump administration. Some analysts even expect that there could be a Shiba Inu ETF in 2025.More By This Author:
