Can Shiba Inu Price Skyrocket 60% As Short-term SHIB Holders Capitulate?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull runs and bearish corrections. The current state of Shiba Inu price seems to be following a familiar pattern – a brief but intense rally followed by a pullback.

Shiba Inu price, a popular meme-based altcoin, has entered a bearish trend following a broader crypto market correction. After a strong two-month bullish rally, SHIB has faced significant pullbacks as short-term holders begin to capitulate. The crypto market remains bearish, with Bitcoin trading below $95,000. As the year nears its end, investors are speculating whether Shiba Inu can rebound, potentially skyrocketing by 60% in the coming weeks.

Can Shiba Inu Price Rally As SHIB Holders Capitulate?

As a researcher studying the cryptocurrency market, I’ve noticed a substantial drop in the price of Shiba Inu over the past month. The MVRV (Maker’s Value to Realized Value) ratio for Shiba Inu, which is a measure that indicates whether a coin is over or under-valued based on its realized value and current market value, has fallen into a range between -10% and -20%. This region, frequently termed as an “opportunity zone,” suggests a point where long-term investors tend to amass their holdings, as short-term traders seem to be giving up or selling off.

These measurements imply a possible price surge might occur since sentiment seems to be leveling off. However, analysts are contemplating whether Shiba Inu (SHIB) could experience an uptrend due to its holders transitioning towards buying more.

SHIB Technical Analysis Hints 60% Rally

A potential bullish setup for Shiba Inu price is unfolding, as the price action forms a classic “cup and handle” pattern. This technical indicator often signals a continuation of an uptrend and hints at a significant upside if confirmed. At the  of writing, the SHIB price is at $0.00002148, eye more gain despite bearish market.

it starts with a broad base (the “cup”) followed by a narrower section (the “handle”). This pattern suggests that market participants are gradually moving from a bearish (negative) outlook to a bullish (positive) one.

For Shiba Inu (SHIB), a distinct pattern has formed over several months. First, there was a gradual accumulation phase resembling a rounded “cup.” Subsequently, a “handle” appeared, characterized by minor pullbacks. The significant level, referred to as the neckline, is currently acting as resistance and can be found around $0.00003287.

According to technical analysis rules, the projected price level for a cup and handle pattern can be determined by taking the height of the cup. This measurement is then combined with the neckline level, which gives an estimate of SHIB’s possible increase. For SHIB, if there’s a verified breakout surpassing $0.00003287, it could potentially surge around 60%, resulting in a target price of about $0.00005339.

A rise above the upper line (neckline) is important for confirming the bullish trend. If this doesn’t happen, the meme coin might struggle to generate the required force to move forward.

If the projected price of Shiba Inu falls beneath its current support level around $0.00002180 (which serves as a kind of base or foundation), it would undermine the positive outlook. A drop below this point might suggest additional decreases, effectively canceling out the cup and handle pattern setup.

If the negative market forces continue but accumulation grows stronger and crucial resistance barriers get broken, the value of Shiba Inu might increase. It’s essential for investors to observe any changes in sentiment and technical indicators that provide confirmation.

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2024-12-27 20:54