Shiba Inu: Next Move Prepare for a Potential 25% Surge

May 21, 2024
10:07 am
Crypto News, Memecoins, Price Analysis, Shiba Inu

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Shiba Inu Price Breaches Key Resistance

Shiba Inu (SHIB) price has breached a two-month consolidation, indicating its readiness to move higher. Investors can expect SHIB to rally 25% and tag the $0.0000315 resistance level.

The price action has flipped bullish, mirroring the broader crypto market. Since setting up a local top at $0.0000457 on March 5, Shiba Inu price has produced lower lows and lower highs, forming a declining trend line. However, the price has now breached this trend line, closing above the horizontal support level of $0.0000253 on May 20.

*Shiba Inu (SHIB) price has breached a two-month consolidation, signaling a potential rally.* *Chart: TradingView*

Bullish Technical Indicators

The Relative Strength Index (RSI) has flipped the 50 mean level into a support floor, showcasing the spike in bullish momentum. The Awesome Oscillator (AO) has also recovered above the zero mean level, further reinforcing the bullish sentiment.

These technical indicators suggest that a breakout rally is just around the corner for Shiba Inu. IInvestors can expect SHIB to form a base above $0.0000253 and rally 25% to $0.0000315. In a highly bullish scenario, it could even retest $0.0000355.

Institutional Accumulation Observed

The consolidation seen in the past two months was a good accumulation zone, which can be confirmed by Santiment’s Whale Transaction Count indicator. This index tracks transactions that are $100,000 or higher and can be used as a proxy for institutional investors’ activity.

Between April 12 and May 21, the Whale Transaction Count index showed consistent spikes during the dips, suggesting that institutional investors were accumulating Shiba Inu. This development adds credence to the bullish thesis explained from a technical perspective.

*Shiba Inu price action. Source: CoinMarketCap*

Bullish On-Chain Signals

Furthermore, a quick look at IntoTheBlock’s signals shows that the overall outlook for SHIB is bullish. Net network growth, larger transactions, and other metrics are forecasting an optimistic outlook for Shiba Inu.

However, investors need to be cautious of a sudden downturn in the crypto market sentiment. If SHIB produces a daily candlestick close below $0.0000210, it would create a lower low and invalidate the bullish thesis, potentially leading to a 20% crash to the next key support level at $0.0000168.