Driven by Bitcoin and Ethereum, the cryptocurrency market experienced a rebound last week, with Shiba Inu (SHIB) also receiving significant boosts.
Currently, the trading price of Shiba Inu is $0.00001697, having increased by 3.26% in the past 24 hours. This price increase coincides with a substantial rise in trading volume, which has increased by 38.30% to reach $279 million.
This new momentum has analysts feeling optimistic, with some even predicting a substantial rise in SHIB's price. Prominent technical analyst Javon Marks recently mentioned that SHIB's value could increase by 5 to 6 times.
Marks' analysis focuses on the "descending wedge" pattern observed on the daily chart, which is typically seen as a bullish reversal signal. He points out that SHIB is approaching the key breakout point of this pattern, which may trigger a significant upward movement.
"SHIB (Shiba Inu) has the potential to rise by about 6 times: the current price is close to the convergence or breakout point of a large descending wedge observed on the daily chart... This may indicate an upcoming bullish breakout," Marks stated.
Marks also mentioned a common bullish divergence phenomenon, which is a divergence between price trends and momentum indicators, further enhancing the likelihood of an imminent breakout. He anticipates that these technical indicators may lead SHIB into a "strong bullish phase for the next stage," with an initial target price set at $0.000081, representing a potential increase of 498%.
It is noteworthy that this breakthrough in expectations aligns with the growing interest of investors in SHIB. According to CryptoQuant data, since January 1, 2024, the withdrawal volume of SHIB from exchanges has significantly increased, totaling 22.67 trillion coins, valued at around $310.79 million.
This breakthrough in expectations coincides with a rise in interest from cryptocurrency investors in SHIB. Data from CryptoQuant shows that since January 1, 2024, a total of 22.67 trillion SHIB have been withdrawn from exchanges, valued at approximately $310.79 million.
However, despite the optimistic outlook, caution is still needed. Notably, whale activity for SHIB has significantly decreased, with only 16 large transactions involving 39.2 billion SHIB recorded in the past 24 hours, a marked reduction from previous activity levels. This may indicate waning interest from major investors in SHIB, raising concerns about its future.
Further analysis from IntoTheBlock shows that only 45% of SHIB holders are in profit, while 53% are at a loss, undermining market confidence in the token's potential. Additionally, the current sentiment index indicates that most traders hold a bearish view on SHIB, with readings of 3 (bearish) and 0 (bullish). However, some analysts suggest that this extreme negativity may instead signal an imminent strong rebound.
