Is Shiba Inu Ready for a Massive Rally?
The famous meme coin Shiba Inu may be preparing to break its previous all-time high. The moves on the charts are spreading excitement among the Hibs. At the end of October 2021, as the crypto market was about to fall, the dog-themed meme coin began its downward journey. From a peak of $0.00008854, it bottomed out at $0.00000543 in June 2023. What are the signs of an uprising? Let’s discuss it.
Shiba Inu Historical Price Patterns
Before we dive into the current situation, let’s take a look at the past. As Niccolò Machiavelli said: “Anyone who wants to foresee the future must look to the past.” Since June 2022, SHIB has been trading in a limited area between $0.00000731 and $0.00001320 fluctuation. Memecoin finally broke out of this range in February 2024.
The price has been perfectly following the support and resistance levels indicated by Fibonacci retracements. In the last week of February 2024, SHIB surged 371.98% to reach $0.00003564, but was unable to maintain this position for long. The coin started another downward move in the face of rejection at the 0.618 Fibonacci level at $0.00003429. From March 2024 to November 2024, the Shiba Inu trended in a symmetrical triangle, but received an upward breakout during the U.S. election.
Current Technical Analysis and Key Levels
Currently, on the daily chart, we can see that the trend is exactly in line with the Fib levels, with current support at $0.00002553 and ongoing resistance at $0.00003429. The RSI looks stable at 67.40, providing huge scope for price gains, while the ADX, at 41.94, supports this move. However, if we talk about the balance of power, it is currently at -0.55, which means that the bulls are taking a break before pushing the price higher.
The 200-day moving average has been crossed by the 20-day, 50-day, and 100-day moving averages, and the 20-day moving average is right at the Fibonacci 0.5 support level. This suggests that this is now a very solid support area, and since the entire cryptocurrency market is in a bullish mood, the chances of this support area being broken are almost zero. As of this writing, the coin’s daily trading volume surged 37.16% to $6.11 billion.
Investor sentiment and on-chain indicators
According to IntoTheBloc, 74% of Shiba investors made a profit at the current price of $0.00002950. 7% of investors bought within the current price range and 19% were at a loss.
Since the launch of Shibarium, the total value locked has been rising, with some minor fluctuations. Currently, the TVL is $5.57 million. It declined from March to November 2024 and then spiked sharply. About 41.07% of the supply has been destroyed, supporting the price increase.
Shiba Inu Ecosystem: Expanding Horizons
There are many projects based on Shiba Inu that contribute to its mass adoption and trading. Each transaction consumes a certain amount of fees. These projects include a decentralized exchange called ShibaSwap, a trading card game called Shiba Eternity, Shiboshis (a collection of 10,000 NFTs), and ShibaSwag.
There are other currencies in the SHIB ecosystem such as Leash and Bone. A new project “Treat” is about to enter the ecosystem. There are many other projects that are supporting the Shiba Inu ecosystem. Bullish market sentiment and strong support levels suggest memecoin is on the rise.
