Crypto analyst Javon Marks has kept an optimistic stance on Shiba Inu (SHIB) and told his followers that the token could rise by 348% and hit $0.000081 despite the recent market pullback.
According to Marks, the meme cryptocurrency is still on track to achieve its target price due to the positive technicals and a potential bullish divergence.
Shiba Inu’s Price Correction and Analysts’ Bullish Prediction
The cryptocurrency market has had a bearish trend this week after having a bullish trend in the previous week. The overall market also staged a rebound in the previous week with Bitcoin rising by more than 8%, with Shiba Inu also rising by 7.3%.
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Nevertheless, due to the market pullback, Shiba Inu has given back most of the recent gains it had made. However, Javon Marks still holds a positive view, suggesting that the token may rise to $0.000081 which would be a 348% increase.
Currently, Shiba Inu is trading at $0.0000178, implying that it must achieve a significant increase to attain the target set by Marks.
In his analysis, Marks had revealed that the token had developed a hidden bullish divergence on the 6-day chart, and this could be seen as an opportunity for price upside. He noted that the token’s further consolidation indicates that it is in the initial phase of a strong bullish trend.
Furthermore, there are several patterns that support this forecast, indicating that there is a high likelihood of a trend towards the previous all-time high for Shiba Inu.
Resistance at $0.00002 and Contrasting Views
Meanwhile, as Marks remains optimistic about SHIB, the cryptocurrency has faced some selling pressure around the $0.00002 mark. On Tuesday, token rose by over 8% but still was unable to overcome this important level of resistance.
Many experts have identified this level as a critical barrier to the growth of Shiba Inu. According to Analyst SwallowPremium, SHIB may fall by 26.5%, and if it fails to break the $0.00002 level, it may drop to $0.00001407.
On the other hand, another analyst, Jack believes that the token is likely to rise beyond this mark to 51% and possibly trade at $0.000027. These opposing views show that the $0.00002 price level will play a crucial role in Shiba Inu’s short-term trend.
Shiba Inu Burn Rate and Long-Term Prospects
Shiba Inu has also seen an increase in its burn rate with a 6750% increase as of October 23. According to the SHIB community, this burn event was very effective and reduced the number of SHIB tokens in the market by 27.1 million.
Current burn data also show that about 58 million tokens have been burned in the last one week alone. This further decrease in supply has provided more confidence to the Shiba Inu investors that the token may finally attain its target price of $0.01.
Although this goal may still seem quite distant, the advocates claim that further ecosystem expansion together with a high burn rate may allow for sustainable price increase.
Shibarium Activity Surge and Ecosystem Growth
Alongside the surge in the burn rate, there has been increased activity on Shibarium, which is the Layer 2 blockchain of Shiba Inu. As per Shibariumscan, the network has recently seen its active accounts increase by 1,559% in the past 24 hours, reaching historical high.
The total number of active accounts increased from 1,685 to 26,237 while the daily transaction frequency grew to 1.76 million from 128,047 the day before. The surge in activity has not yet translated into a corresponding increase in the total value locked on the network.
The growing engagement indicates that Shibarium is gaining traction within the Shiba Inu ecosystem. Despite short-term price fluctuations, ongoing ecosystem developments and the token burn mechanism could help Shiba Inu sustain long-term growth.
