SHIB could rally over 50% if this happens: analyst

SHIB is preparing for a major uptrend as analysts predict a major uptrend for the altcoin, citing multiple bullish patterns.

In his post on November 21, analyst Ali Martinez noted that the Shiba Inu formed a bull flag formation on the 1-day chart. The pattern is very bullish in technical analysis, and a break above it usually leads to big gains in the short term.

Martinez predicts that SHIB could climb to $0.000037 (54% above its current price) if it successfully breaks and stays above the $0.000025 resistance level and maintains this position.

Independent analyst Javon Marks took an even more optimistic view, noting that SHIB has already broken the multi-month falling wedge formation, which is a strong bullish indicator. Marks predicted a potential rise to $0.000081, representing an increase of over 200% from current price levels.

Shiba Inu (SHIB), the second largest meme coin, was trading at $0.000026 on Friday, November 22, up 2.2% from the last day, with a market capitalization of over $14.5 billion. It is up over 92% from its low in August.

Multiple catalysts at work

SHIB’s recovery can be attributed to bullish catalysts, including the significant increase in token burns in recent months and increased activity on the Shibarium network.

Shiburn data on Thursday revealed a 2,200% increase in Shiba Inu token burns, with 14.58 million tokens removed from circulation. This increased the total number of tokens burned to over 410.7 trillion, reducing the circulating supply to 583.8 trillion.

Another driver of Shiba Inu price momentum is the increase in transactions on the layer 2 blockchain Shibarium. Over the past few months, Shibarium has processed more than 541 million transactions. This network growth is a positive development for SHIB, as transaction fees collected in BONE tokens are partially converted and burned into SHIB. This causes the supply to decrease even further.

The accumulation of SHIB whales has also increased recently. According to data from IntoTheBlock, net flow from major holders increased by 256% on Thursday, as whales accumulated 393.48 billion SHIB tokens worth over $9.8 million, compared to $6 million in sales recorded the previous day.

Moreover, SHIB’s rally could also benefit from the ongoing rise of Bitcoin, which has already sparked a bullish trend in the crypto market. The flagship cryptocurrency’s recent move above $99,000 resulted in a 5.3% increase in the total market cap of altcoins.

SHIB is not overbought SHIB price, 50-day and 200-day EMA chart | Source: crypto.news

On the 1-day SHIB/USDT price chart, SHIB is trading above the 50-day and 200-day Moving Average Exponents, indicating that the uptrend remains strong and will continue in the short term. The Relative Strength Index at 59 lends weight to the fact that there is room for further gains as the meme coin has yet to reach overbought levels.

SHIB Bollinger Bands and RSI chart | Source: crypto.news

SHIB is also moving above the middle Bollinger Band, indicating an increase in buying pressure, which is a positive sign for the recent rally.

Given these bullish indicators, SHIB is likely to continue its recovery; The next potential target would be $0.000036, the year-to-date high.