Shiba Inu: Potential 400% Surge in SHIB Price Anticipated due to Increased Bitcoin Demand
Over the past day, the memecoin market has been quite lively, with meme tokens dominating the list of top gainers.
Currently trading at $0.00001818, Shiba Inu [SHIB] is holding firm in the 20th position, with its trading volume seeing a 21% surge within 24 hours, reaching $206 million. This increase has led experts to speculate on a potential SHIB surge of up to 400%.
Typically, memecoins tend to showcase higher daily gains compared to Bitcoin as a market cycle nears its conclusion.
This pattern is consistent with a common trading approach where profits from Bitcoin are reinvested into high-cap memecoins in pursuit of greater returns within a relatively low-risk environment.
A similar scenario played out during the September surge when Bitcoin was on the verge of facing resistance at $65K.
During that period, as the market heated up, a substantial inflow of funds poured into memecoins, with SHIB alone recording a daily gain of over 20%, supported by a spike in trading volume that hit $13 trillion.
In essence, the 21% rise in trading volume serves as a promising indicator, creating excitement in the market regarding a potential 400% SHIB surge that could propel it above $0.000020.
Factors Essential for an Ensured SHIB Surge
Despite the uptick in trading volume, traders seem skeptical regarding SHIB’s long-term growth prospects.
Market panic driven by excessive greed surrounding Bitcoin may have prompted numerous investors to sell off their holdings.
Nonetheless, if traders start perceiving SHIB’s current price as a buying opportunity during a perceived “dip,” they could absorb the selling pressure, analogous to previous occurrences.
Presently, the momentum for a significant SHIB rally appears lacking, with the Relative Strength Index (RSI) hovering in the neutral region and traders increasingly displaying doubt.
This implies that SHIB has yet to attract new traders, even as Bitcoin retraces from its peak of $67K. The subsequent move by Bitcoin holds key significance; a retreat below critical levels amid an overheated market could potentially pave the way for a SHIB rally to gain momentum.
Hence, the pivotal signal to monitor for a SHIB surge is when the market becomes overheated, accompanied by a drop in Bitcoin volume as investors secure profits. Only then could a substantial uptrend in SHIB be deemed probable.
As per CryptoCrypto, with Bitcoin witnessing a 20% decline in trading volume within the past 24 hours, this could mark the ideal opportunity for SHIB to shine.
Any bullish crossover in the MACD indicator is anticipated soon. A decrease in Bitcoin activity in the upcoming days might signify a shift of profits into alternative assets. Should this happen, a breakout in the SHIB rally could see it pushing towards $0.000020 by the conclusion of this cycle.