Shiba Inu price has been in a tight range in the past two weeks, mirroring the performance of most altcoins. Several fundamentals, like the upcoming Trump inauguration, falling SHIB coin balances on exchanges, seasonality, and rising open interest points to a potential rebound. So, will the Shiba Inu coin rise and retest its December highs?
Shiba Inu Price Could Rise Amid Fundamental Tailwinds
SHIB price is facing numerous tailwinds that could help it resume its uptrend. As we wrote earlier, the SHIB burn rate has continued to rise, reducing the number of tokens in circulation.
More data shows that more SHIB tokens are leaving exchanges, a sign that investors are holding it for longer. Shiba Inu coins in exchanges dropped by about 0.6% to 258.7 trillion from 260.3 trillion a week before. The total supply in exchanges stands at just 25.87, which is positive figure for the coin.
Shiba Inu price is also seeing more tailwinds in the futures market, where the open interest has constantly risen in the last few days. After bottoming at $50 million in December, the interest has risen each day, reaching a high of $65.4 million, the highest point since December 20.
Like other cryptocurrencies, SHIB coin price will see the benefits of the upcoming Trump administration and its emphasis on deregulation. It may also benefit from the upcoming Gary Gensler resignation and FTX distributions.
SHIB Coin Price Technical Analysis Points To An Uphill Battle To December Highs
So, will the Shiba Inu price jump by 45% and retest its highest level in January? Technicals are sending mixed signals about this. On the positive side, there are signs that the SHIB price has remained above the 200-day moving average, which has offered an important support.
Shiba Inu has also remained above the rising trendline that links the lowest points since September last year. Additionally, the MVRV indicator, which compares the market value and relative value is at 2.7, a sign that SHIB is a cheap coin. It also formed a cup and handle-like pattern.
These indicators mean that the coin has found a strong support and that it may rebound in the coming weeks. A strong rebound could see it rise and retest its December highs.
However, there is also a risk that the SHIB coin has formed a bearish pennant pattern, which may lead to a bullish breakout.
Shiba Inu Coin Price Targets
A bullish move will see Shiba Inu coin rise and retest the resistance at $0.00003270, which is about 45% above the current level. A drop below the support at $0.00001857, its lowest point on December 20 will invalidate the bullish SHIB forecast and point to a drop to the ultimate support at $0.00001192.
Frequently Asked Questions (FAQs)
Yes, Shiba Inu has many bullish catalysts that could see it soar to the December highs. Its open interest is rising and has found support at the 200-day moving average.
SHIB coin price is rising in sync with the ongoing crypto prices comeback. Most coins have risen as the January Effect continues.
Shiba Inu is one of the oldest meme coin and has a bright future as the crypto industry goes mainstream.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
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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