In the wake of recent market fluctuations, the Shiba Inu (SHIB) token shows strong signs of gearing up for a mega rally fueled by bullish indicators and significant fundamental developments.
Despite its origins as a meme token, SHIB has established itself with a vibrant community and now stands resilient in the face of market volatility. Despite low trading activity and the absence of whale transactions exceeding $1 million, SHIB rebounded strongly from a robust yearly support level last month. This resilience has encouraged the community, with analysts predicting upside potential for the cryptocurrency to hit the highly coveted $0.001 price level.
On Monday, renowned crypto analyst Ali Martinez offered insights into SHIB’s potential trajectory, suggesting, “If Shiba Inu breaks the upper boundary of this descending parallel channel at $0.00002444, $SHIB could witness a 20% upswing to $0.00002954.”
Martinez’s optimistic forecast builds upon his earlier analysis from May 1st, where he identified the formation of a bullish flag pattern for SHIB.
Elsewhere, analyst “LingridTrader” highlighted a double bottom formation at a crucial support level, signaling a potential trend reversal. Furthermore, according to the analyst, a triangle formation on the daily chart suggests a classic trend continuation pattern, hinting at an impending breakout. “This pattern indicates a price squeeze, where the market is building up energy for a breakout,” she noted earlier on Monday.
In anticipation of this movement, “Lingrid” revealed expectations of a temporary pullback towards the support level before the resumption of upward momentum, with a target set at the resistance zone at 0.00002440.
That said, SHIB’s fundamental landscape also remains promising. Last week, leading institution Nexo reaffirmed its support for SHIB, highlighting its evolution from a joke meme coin to a symbol of communal strength since its inception in August 2020. MarketVector, a subsidiary of the US asset management giant VanEck, also launched a new index, MEMECOIN, which includes SHIB, among other popular meme tokens.
These developments point to increasing interest by big investors in SHIB. Over $13 billion has been invested in SHIB, propelling its market capitalization to 11th place, just behind Cardano.
