As a seasoned crypto investor with a knack for spotting trends and patterns, I find the latest analysis on Shiba Inu (SHIB) intriguing. Having weathered multiple market cycles, I can tell you that the potential for a 90% price boom is indeed tantalizing, but it’s not something to bet the farm on.
Shiba Inu’s price has risen by more than 78.50% since the start of the year, reaching a value of $0.0000191 on November 8. However, it has lagged behind most of its major meme coin competitors like Dogecoin (DOGE) and Pepe (PEPE), which have soared by approximately 115% and an impressive 668% respectively during the same timeframe.
According to a combination of technical and fractal analysis, it appears to be demonstrating signs of moving closer to its record highs from 2024.
A 90% SHIB price boom next?
The initial significant indicator that Shiba Inu (SHIB) may experience a price surge is due to the development of a cup-and-handle chart pattern.
A cup and handle is a chart pattern that gets its name from its unique shape, which looks like a teacup followed by a smaller, sloping section similar to a teacup’s handle. This pattern often leads to a breakout, with the potential price increase estimated by summing the maximum height of the pattern to the point at which the breakout occurs.
Currently, as of November 8th, the price chart for Shiba Inu shows it’s in the stage of a handle formation pattern. This means it’s preparing for a potential breakout, aiming to surpass the resistance level at approximately $0.00002032 which is commonly referred to as the neckline.
If SHIB experiences a successful breakout, it could potentially reach its projected cup and handle price of approximately 0.00003545 by early 2025 – an increase of about 90% from its current value. However, this target lies within the resistance zone established during March 2024, which encompasses the yearly high of around 0.00004567.
Capital rotation from DOGE boosts SHIB
The primary reason Shiba Inu has lagged behind Dogecoin is due to Elon Musk’s persistent endorsement of his proposed Government Efficiency Department, a new agency aimed at curbing unnecessary government spending. Coincidentally, this department shares the same initials as Dogecoin’s ticker symbol, DOGE.
As a crypto investor, I noticed that by November 8th, Dogecoin’s daily Relative Strength Index (RSI) had surpassed 70, a level indicating “overbought” conditions. This suggests potential downside for the meme coin in the short term.
Conversely, Shiba Inu’s daily Relative Strength Index (RSI) hovered around 58.42, indicating a relatively neutral zone. This implies that the coin might still have potential for further price growth.
In the frequently traded SHIB/DOGE pair, the daily Relative Strength Index (RSI) indicates an excessively “overbought” state. This suggests that the demand for SHIB relative to DOGE may be weakening as the selling pressure appears to be diminishing.
It seems that Dogecoin’s Relative Strength Index (RSI) suggests a potential slowdown in its recent surge. If investors decide to cash out, this action might trigger a shift of funds from Dogecoin to Shiba Inu, which could lead to an upward trend for Shiba Inu.
As a cryptocurrency investor, I find myself optimistic about Shiba Inu (SHIB), as its past resilience provides a bullish outlook. Remarkably, scenarios that mirror SHIB’s current technical setup have ignited impressive rallies, ranging from 30% to an astounding 150%.
Under the present situation, characterized by an overbought Relative Strength Index (RSI) and a notable support level indicated in red on the provided chart, there appears to be a strong likelihood for a further SHIB/DOGE rally.
If this event occurs, the potential upward trend might lead us to around 0.0001276 DOGE, which is near the 50-day Exponential Moving Average (represented by the red line). This movement would signify an increase of more than 30% from the current price point, strengthening the argument for a projected 90% rise in the SHIB/USD analysis.
Shiba Inu looks to Trump’s second term
The Shiba Inu system is considering creating a Strategic Hub for Innovation and Blockchain (S.H.I.B.) in an American city, with the goal of turning it into a world-renowned hub for both blockchain technology and sustainable growth.
The Trump administration is typically predicted to support policies that promote economic expansion, reduce regulations, and foster collaboration between the public and private sectors. Such policies might potentially boost advancements in blockchain technology and tech centers such as S.H.I.B. (Silicon Hills Innovation Business).
The centerpoint might foster the creation of fresh applications and scenarios for SHIB, thereby strengthening its attractiveness as an investment opportunity for potential investors.
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2024-11-08 14:32