The meme coin niche has been one of the biggest beneficiaries of the latest market pump, with Shiba Inu (SHIB) being a prime example.
The price of self-proclaimed killer Dogecoin has reached a three-month high, and some in the industry believe there is still plenty of room for further growth. However, some factors suggest that the rally may not be as durable as the bulls would hope.
Parabolic jump incoming?
At press time, SHIB is trading at around $0.000005455 (per CoinGecko), representing a substantial 22% increase on a weekly scale. Its market capitalization has surpassed $3.2 billion, strengthening the token’s position as the second largest coin.
According to Crypto Patel, the latest revival is nothing compared to what could come next. The analyst note that SHIB has achieved a 95% macroeconomic correction over the years and is now trading in a historic accumulation zone, where the weekly structure repeats the fractals that preceded previous price explosions. That said, they claimed that the coin could be gearing up for a 2,200% rally.
The analyst’s bullish scenario includes a weekly close above $0.000006697, which, combined with a successful retest and increased volume, could trigger the next HTF expansion. At the same time, a weekly close below $0.0000035 would invalidate the current accumulation thesis.
Crypto with Gopal presented an even more optimistic prediction. He opined that SHIB printed a classic falling wedge formation and is consolidating into a long-term ascending structure, with sellers losing momentum as prices compress near the lower boundary. The analyst speculated that a clear break above the upper trendline could fuel a major rally to $0.00025, an increase of almost 5,000% from current levels.
“Bulls are waiting for confirmation – a major breakout could be next,” he added.
It is important to note that some popular market observers have been talking about SHIB before the latest market rally. Last week, David Gokhshtein claimed that people who cancel DOGE, SHIB and PEPE are “in for a rude awakening”. For its part, Whale News Daily suggested that the Shiba Inu lighting will be “epic” and will kick off a truly alternate season.
The signals concerned
Despite this positive performance, there is some evidence to suggest that SHIB may not be completely out of the woods. Data shows that Shiba Inu’s burn rate has decreased by over 91% over the past month, meaning the asset’s supply remains huge after the team and community burned only a negligible amount of coins.
Next on the list is the declining business of Shibarium. Daily transactions processed on the Layer 2 scaling solution number in the thousands, signaling low user engagement and potentially undermining investor confidence.
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