TLDR
- Shiba Inu (SHIB) has closed three consecutive green weeks, showing signs of bullish momentum
- One analyst predicts potential gains of up to 1,479% to reach new all-time highs
- SHIB previously saw a 400% breakout in 2024 after similar consolidation patterns
- Technical analysis shows a double-bottom pattern with a 145% upside potential
- Decreasing circulation (burn rate up 1,562%), Shibarium network growth, and growing community support the bullish case
Shiba Inu (SHIB), the popular meme cryptocurrency, has quietly been building momentum while much of the market’s attention has been on Dogecoin. Data shows SHIB has closed three consecutive green weeks, potentially setting the stage for a major breakout similar to or even greater than its 400% surge earlier in 2024.
The meme coin is currently trading above its August 2024 low, which preceded its previous significant rally. This positioning suggests SHIB could be at the starting point of another notable price movement.
One pseudonymous crypto analyst has highlighted several technical formations on SHIB’s chart that point to bullish continuation. The analyst noted that if the current momentum continues, Shiba Inu could rally to new all-time highs with targets of $0.000139 (894% from current levels) or even $0.000220 (1,479% increase).
“The market is turning green now and will continue to trade green. It can happen that it go higher rather than lower based on the chart,” the analyst stated, adding that they might be underestimating SHIB’s potential.
Technical Analysis Supports Bullish Case
Technical indicators provide further support for a potential upswing. SHIB has formed what appears to be a double-bottom pattern with a neckline at $0.000033, representing a 145% upside from current prices.
The Relative Strength Index (RSI) on the weekly chart has turned upward, moving from 35.8 to 43, suggesting increasing buying momentum.
SHIB reached a low of $0.00001080, a level that coincides with an ascending trendline connecting previous lows from June and October 2023 and March 2024. This trendline has served as strong support in the past.
However, traders should note that previous patterns of three consecutive green weekly closes in November-December 2024 were followed by three red weekly closes and an extended downtrend. This historical pattern suggests caution despite the current bullish signals.
Fundamental Factors Driving Potential Growth
Several fundamental factors could contribute to SHIB’s potential price surge in the coming months.
The coin’s circulating supply continues to decrease through burning mechanisms. Shiba Inu started with a supply cap of over 999 trillion tokens, which has fallen to approximately 589 trillion today. Recent data shows the daily burn rate soared by 1,562% to 11.8 million tokens.
The Shibarium network, SHIB’s layer-2 solution, recently crossed $1 billion in transaction count. The network continues to show growth in active addresses, adding utility to the ecosystem.
SHIB also benefits from one of the most active and passionate communities in crypto, known as the SHIB Army. On-chain data indicates this community has expanded to over 1.5 million addresses, providing a strong base of supporters.
Market conditions may also favor SHIB’s growth as certain economic risks appear to be easing. Reports suggest decreasing trade tensions could boost appetite for risk assets like cryptocurrencies.
Data from IntoTheBlock shows that a majority of SHIB investors are currently underwater on their investments, which could create potential for a short squeeze if prices begin to rise, further accelerating upward momentum.
The meme coin’s most recent support level rests at $0.00001080, with a key resistance target at $0.000033. If SHIB fails to maintain its current support, analysts suggest the next support level could be around $0.000005677, approximately 60% below current prices.
The third consecutive green weekly close marks a pattern worth watching as SHIB attempts to break above its long-term support levels and potentially begin a new uptrend.
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