In an analysis, Moataz “Al-Jaboom” Al-Sayed, a cryptocurrency analyst and Forbes 40 Under 40 nominee, predicts a significant rise in the value of the Shiba Inu (SHIB). According to Al-Sayed, the meme-based cryptocurrency is poised for a potential increase in value that could reach $0.00024, which represents an unprecedented increase of 1,105% from its current levels.
Shiba Inu price will rise by 1100%?
In a review of SHIB's price activity on the weekly chart (SHIB/USDT), Al-Sayed pointed out a recurring pattern that initially occurred during the second quarter of 2021, shortly after Binance, a major cryptocurrency exchange, began trading SHIB. According to him, historical data for the Shiba Inu shows a pattern that, if repeated, will push its price to new heights. He pointed out that the cryptocurrency witnessed a significant rise to $0.00005 during the week of May 10, 2021, after its listing on Binance.
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Al-Sayed's analysis draws attention to a critical period in SHIB market behavior. After reaching a high of $0.00005, the token underwent a correction, settling below the pivotal support range from $0.00001784 to $0.00001995 for nearly 120 days. However, a subsequent breakout occurred in October 2021 as the broader bull market gained momentum, pushing SHIB 343.64% from its support level to a peak of $0.00008854.
History repeats itself 👀 #SHIB pic.twitter.com/zeeXVWhpKZ
– Elia (@Eljaboom) June 8, 2024
A subsequent correction and entry into a bear market, exacerbated by the collapse of the Terra ecosystem in May 2022, saw SHIB prices fall below key support levels. It has remained weak below these levels for 658 days, struggling to clear the $0.00001 mark. However, a rally again in March of this year saw SHIB rise more than 370% to a yearly high of $0.00004567.
Based on this data, Al-Sayed expects a similar, if not clearer, trajectory for SHIB in the near future. It is estimated that this next breakout could push SHIB's price to $0.0002404, effectively increasing its market capitalization to $141.6 billion. Given the cyclical nature of the cryptocurrency market, this could be a possibility, according to a cryptocurrency analyst.
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On the SHIB/USD daily chart, the Shiba Inu price is currently going through a consolidation phase, after a significant surge to this year's high in early March. Despite breaking out of the symmetrical triangle pattern in mid-May, SHIB failed to maintain a close above the 0.382 Fibonacci retracement level at $0.00002883.
After this rejection, the price fell below the 0.236 Fibonacci level and is now struggling to establish support at the 100-day Exponential Moving Average (EMA). Maintaining a daily close above $0.00002326 is crucial to prevent a possible further decline towards the 200-day moving average at $0.00001977.
Featured image created with DALL·E, chart from TradingView.com