Shiba Inu Coin Price Forms Rare Pattern, Suggesting a 50% Surge

Shiba Inu (SHIB), the second-largest meme coin, has seen a 33% decline from its December highs, but recent price action and technical indicators suggest a potential rebound. After reaching a low this week, SHIB rose 12% to a high of $0.00002215, showing signs of recovery. However, it has lagged behind other meme coins like Fartcoin, ai16z, and Dogwifhat, which have been performing better in recent weeks.

One of the factors contributing to Shiba Inu’s underperformance is the struggles of its Shibarium layer-2 network. While Shibarium has nearly reached the 800 million transaction milestone, total transaction fees have continued to decline. On Tuesday, the network collected only 640 BONE in fees, valued at under $300. Since part of the fees collected from Shibarium are used to burn SHIB tokens, the reduced transaction activity has affected the burn rate, which has remained under pressure in recent weeks.

Despite these challenges, Shiba Inu’s price could experience a strong comeback as the broader cryptocurrency market rallies. With Bitcoin approaching the key resistance level of $100,000 and the positive impact from encouraging consumer inflation data, SHIB might follow suit. Additionally, the potential for favorable regulatory changes under Donald Trump’s upcoming inauguration and Paul Atkins’s potential leadership at the Securities and Exchange Commission (SEC) could also fuel optimism across the crypto market.

Shiba Inu Coin Price Analysis

From a technical perspective, SHIB has formed a hammer or morning star candlestick pattern, which typically signals a potential reversal. The pattern, characterized by a long lower shadow and a small body, indicates that buyers may be stepping in after a period of decline.

Moreover, SHIB has formed a falling wedge chart pattern, made up of two converging downward trendlines. This is generally seen as a bullish reversal signal, with breakouts often occurring when the lines converge. Additionally, bullish divergence in the Relative Strength Index (RSI) further supports the potential for a rebound, as the RSI has formed an ascending channel.

If SHIB manages to break out from this pattern, it could target last year’s high of $0.000033, representing a potential 50% gain from its current price level. However, the bullish outlook will be invalidated if SHIB drops below the key support level of $0.00001853, which was its lowest point in December.

While Shiba Inu has faced some challenges, particularly with Shibarium’s performance, there are signs that SHIB could stage a strong recovery if the broader market continues its upward momentum. The technical indicators suggest a potential 50% jump, but this bullish scenario depends on a successful breakout and maintaining support above $0.00001853. If these conditions are met, Shiba Inu could see a significant rally in the near future.