SHIB, the second-largest meme cryptocurrency by market cap, experienced a 14% surge over the past five days, rising from $0.000013 to $0.00001478. This bullish rally was likely driven by the broader market recovery following the U.S. Federal Reserve’s 0.5% rate cut. The Shiba Inu price shows signs of a potential extended recovery, supported by this double-bottom reversal pattern.
Shiba Inu Price Targets 38% Surge as Bullish Reversal Takes Shape
The cryptocurrency market took a bullish turnaround in September following the Bitcoin price reversal from $52,500 to $63,456— a 20% increase. The renewal recovery sentiment shifted the prevailing correction in Shiba Inu price into a sideways trend above $0.0000123.
In the last 11 weeks, the SHIB price showcased three failed attempts to breach the bottom support line, indicating the active accumulation zone for buyers. The latest reversal uplifted the altcoin 19.82% to trade at $0.0000147 while the market cap surged to $8.7 billion.
An analysis of the daily chart shows the formation of a double-bottom reversing pattern, a chart setup often spotted at major market bottoms.
If the pattern holds true, the dog-themed memecoin is poised for a 9.3% surge before the critical breakout from the $0.000016 neckline. The potential breakout will intensify the bullish momentum and drive another 25% surge to target $0.00002.
According to the Santiment data, the supply of SHIB on exchanges steadily declined to reach 75.3 Trillion coins. This downward trend suggests a withdrawal of tokens from exchanges, which can indicate investors’ accumulation or a decrease in selling pressure.
On the contrary, the 30-day MVRV (market value-to-realized value) ratio has spiked to 7.66%, indicating that short-term buyers are in profit. Historically, the MVRV ratio value of 8-10% has coincided with Shiba Inu price prediction tops as these speculative traders often exit the market early for profit booking.
Therefore, if the overhead supply persists, the Shiba Inu price could revert to $0.000012 and prolong the consolidation trend.
For a detailed analysis, check out the top meme coins article.
Frequently Asked Questions (FAQs)
If SHIB breaks out from the $0.000016 neckline, it is poised for a 25% surge, potentially reaching $0.00002.
The $0.0000122 level serves as a crucial accumulation zone, where buyers have actively prevented the price from falling further, indicating strong support.
A decline in SHIB supply on exchanges, down to 75.3 trillion coins, suggests increased accumulation by investors and reduced selling pressure
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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