Shiba Inu’s Chances of Surging to Six-Month Peak Are Increasing
Shiba Inu [SHIB], the second most significant joke coin by market capitalization, has encountered a prolonged period of challenges. In the last couple of months, this joke coin has faced sharp declines and extreme fluctuations.
Presently, Shiba Inu is trading at $0.00001325, showing a 1.30% decline on a weekly basis. Over the past month, SHIB has dropped by 0.57%. The current market situation indicates that the joke coin is striving to break out from a long downward channel.
After hitting lower lows of $0.00001231 on September 6th, SHIB managed to reach a local high of $0.00001411, portraying signs of improvement.
Consequently, recent market conditions have led analysts to be optimistic about the meme coin’s future. Analyst Johncy Crypto has predicted an upcoming recovery, pointing towards a breakout from a falling wedge pattern.
Interpreting Market Sentiment
In his evaluation, Johncy Crypto noted that SHIB is breaking out from a falling wedge pattern on the daily charts, indicating a positive trajectory.
According to the analyst’s official page, he stated, “Shiba Inu is breaking a falling wedge pattern on the daily timeframe. Post a bounce from the support zone, potential targets include $0.00001610, $0.00002010, $0.00002380, $0.00002940, and $0.00003420.”
This analysis suggests that SHIB’s immediate target lies at $0.00001610, with a bullish scenario possibly propelling it to $0.00003420.
A breakout from the falling wedge indicates a bullish reversal, signifying a weakening downtrend and a resurgence of buyer activity, leading to a potential price increase.
Therefore, a successful breakout could trigger a rally in SHIB prices, reversing the previous bearish trend.
Analyzing SHIB’s Chart Movements
As observed by analysts, SHIB is breaking away from its current trend, as evident from the recent price action showing attempts to form a bullish flag.
Consequently, the existing market conditions might pave the way for a reversal in SHIB’s trend.
Examining Shiba Inu’s funding rate provided by various exchanges, it has been predominantly positive in the recent week, standing at 0.003%, suggesting more investors are favoring long positions over short positions, indicating a positive market sentiment where traders expect prices to rise.
Moreover, SHIB’s price Daa divergence has remained positive throughout the week at 10.83%, highlighting growing network demand and adoption potential, albeit not yet reflected in prices.
This hints at SHIB being undervalued and hints at future price growth due to network support for long-term value appreciation.
Furthermore, SHIB’s exchange netflow has been consistently negative over the past month, suggesting more asset withdrawals than deposits in the last 24 hours. This signals long-term investor confidence as assets are being moved to cold wallets.
In summary, there is a shift in market sentiment favoring SHIB price appreciation. If the current market conditions persist, the meme coin will target the next significant resistance level at around $0.00001483, with a breakthrough potentially leading to $0.00001772.