Analysts Predict a Potential 71% Surge for Shiba Inu (SHIB)
Shiba Inu’s (SHIB) price has experienced a boost due to the increased popularity of meme coins since September. Decentral Park Capital’s head of research, Kelly Ye, has indicated that SHIB, along with other meme coins, is likely to surpass Bitcoin in performance.
“WIF, PEPE, BONK, and SHIB have all shown better performance than BTC and the CoinDesk 20 Index in the past month.”
Another analyst has forecasted further gains for SHIB, with potential resistance levels around $0.00003260 in 2022.
“$SHIB is moving towards the $0.00003260 mark sooner than expected. The memes super cycle has just begun.”
If this target is achieved, SHIB could see a significant increase of 70% in gains.
On-Chain Metrics Point to SHIB’s Performance
September witnessed a remarkable performance by SHIB, highlighted by a surge in whale transactions (shown in yellow on the chart). Concurrently, daily active addresses (marked in blue) reached a monthly peak, indicating heightened network growth and user engagement.
The spike in demand during September fueled the rally, although these metrics saw a decline in October. Currently, daily active addresses have dipped below August levels, signaling a waning interest in SHIB.
Unless Bitcoin surpasses the $70K milestone, a substantial rebound for SHIB might be delayed.
From a traders’ perspective, significant players on Binance have reduced their long positions after a recent increase. As of now, net SHIB longs stand at 59.5%, a slight decline from the peak reached on Monday. This reduction in long positions hints at a cautious but overall optimistic sentiment, influenced by BTC’s mild pullback.
Despite recent market shifts, SHIB has managed to uphold a crucial trendline support since September. Sustaining this trend could lead to a resurgence towards the Q2 price range, potentially exceeding $0.000020 in the short term. However, a breach below this trendline may pull SHIB towards the 50-day EMA near $0.000016.
In summary, while SHIB’s impressive performance in September suggests long-term bullish prospects, a temporary decrease in market interest may hinder a rapid recovery. The coin remains poised for potential growth, but short-term fluctuations are contingent on broader market movements.