fxs_header_sponsor_anchor

Shiba Inu could rise 15% by the end of the week, here’s why

  • Shiba Inu price has resumed its growth path, rising over 3% in the day with aspirations for more gains.
  • SHIB could soar almost 15% to tag the $0.00001200 resistance level by the end of the week.
  • The bullish narrative will be invalidated if the meme coin records a candlestick close under $0.00001010.

Shiba Inu price has recovered from a massive sell-off earlier in the week. The revival comes as SHIB takes advantage of the broader rally in the crypto industry, with Bitcoin (BTC) steadily peeling off its losses by rising 5.33% in the last 24 hours. Arguably the meme coin has the most desirable sentiment among its peers based on ecosystem-related fundamentals.

The positive sentiment for Shiba Inu price comes as investors wait for the emergence of the Shibarium blockchain and its deflationary propensities. As was the case for Arbitrum (ARB), there is a general appreciation that new protocols, especially Layer 2 networks on Ethereum, often draw more investors due to their wealth-creating abilities. Similarly, the expectation has piled for SHIB and could influence its uptick. There are already encouraging signs as more testers have already enrolled in Shibarium’s beta network.

The Shibarium launch will greatly enhance the network’s efficiency, reduce transaction fees and increase throughput. Moreover, the burn rate will increase, destroying 70% of the base transaction fee, which is very bullish for SHIB.

Shiba Inu price growth path

Shiba Inu price is up over 3% in the last 24 hours and is exchanging hands for $0.00001068 at the time of writing. If investor interest in the meme token continues, SHIB could ascend to confront the immediate obstacle at $0.00001110.

An increase in buying pressure above this level could take Shiba Inu price to test the Exponential Moving Averages (EMA), starting with the 100-day EMA at $0.00001112 before a confrontation with the 50- and 200-day EMAs at $0.00001118 and $0.00001147, respectively.

Beyond these supplier congestion zones, Shiba Inu price could tag $0.00001200, denoting a 12.8% increase from the current level. In highly bullish cases, the meme coin could reach higher towards the $0.00001350 resistance level or restore the February highs around $0.00001429.

A silver lining for Shiba Inu price is that the Relative Strength Index (RSI) indicator shows promise, with a price strength of 46, close to the mean line.

SHIB/USDT 1-day chart

Conversely, if buying momentum drops, bears could recover the market, causing Shiba Inu price to drop below the immediate support at $0.00001010. A daily candlestick close below this level will render the bullish thesis invalid. In the dire case, SHIB could descend to the psychological $0.00000900, or worse, the December lows around $0.00000805, constituting a 25% drop from current levels. 

Santiment data to add credence to the bearish case

The bearish case for Shiba Inu price draws support from Santiment data, which shows SHIB whales are trading less. 

As shown in the chart, whale transactions have dropped since the recent local top around February 4, where transactions exceeding $100,000 have dropped from 285 to 109. This points to reduced interest as investors speculate weak price prospects. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.