Shiba Inu (SHIB) Price Prediction: A 129% Surge Possible?
Shiba Inu (SHIB), the popular meme coin, has been making waves in the crypto market recently. With a surge of 19.68% in the last seven days, SHIB is the second biggest weekly gainer among the top 15 cryptocurrencies. But can it keep this momentum and reclaim its yearly peak of $0.000045? Some analysts think so.
The Market’s Role in Shiba Inu’s Potential Rise
The broader cryptocurrency market is experiencing a positive trend, with Bitcoin (BTC) approaching the $65,000 mark. This upward trajectory has definitely contributed to the positive sentiment around Shiba Inu. However, SHIB’s recovery hasn’t been as strong as some might expect, mainly due to a decline in trading activity.
While the market is recovering, investor interest in buying SHIB has been relatively low compared to previous uptrends. The 24-hour trading volume for SHIB has been modest, averaging $262 million over the past week. This falls short of the volumes seen during significant uptrends, such as the one in March that saw SHIB reach $0.000045, when the average trading volume was a staggering $7 billion.
Shiba Inu’s Need for More Volatility and Activity
To achieve a similar price pump as the one in March, SHIB needs a significant increase in trading activity and increased volatility. This means a convergence of heightened trading activity and increased volatility.
Data from Santiment revealed a spike in Shiba Inu’s volatility to a three-month high of 0.0574. However, this increase didn’t coincide with a rise in active addresses, which currently number just 3, 974. Historically, significant price spikes in Shiba Inu occur when both volatility and active addresses increase together.
Resistance Levels and Shiba Inu’s Potential 129% Rise
For Shiba Inu to keep its upward trend, it must overcome several resistance levels. Currently trading around $0.000019, SHIB aims to break above $0.00002. Data from IntoTheBlock shows resistance between $0.00002 and $0.000025, where 97, 160 addresses hold their tokens. More substantial resistance lies between $0.000025 and $0.00003, and again between $0.00003 and $0.000036. These ranges represent Shiba Inu’s biggest resistance points, and breaching them could propel SHIB towards the weaker resistance at $0.000045. This would require a 129% increase from its current price.
Broader Market Influences and Institutional Investment
The broader cryptocurrency market significantly influences Shiba Inu’s price movements. Bitcoin’s recovery, nearing $65,000, is a crucial factor in bolstering market sentiment. Additionally, recent political events involving former U.S. President Donald Trump have added complexity to market dynamics. The influx of institutional investment in Bitcoin is also a positive sign. On-chain analytics platform CryptoQuant reported that institutional investors have been accumulating BTC, purchasing over $5.8 billion worth in a single week. This wave of institutional buying indicates growing acceptance of cryptocurrencies in mainstream financial portfolios and could indirectly boost confidence in altcoins like Shiba Inu.
Conclusion
Shiba Inu’s potential 129% surge depends on a rare convergence of market patterns, increased trading activity, and heightened volatility. While the current market recovery has created a positive backdrop, SHIB’s journey to $0.000045 will require overcoming significant resistance levels and attracting renewed investor interest. As the cryptocurrency market evolves, Shiba Inu remains a coin to watch, with its performance closely linked to broader market trends and institutional investment flows.
