TLDR
- Shiba Inu (SHIB) price currently at ~$0.0000123, down 2.8% in recent trading
- Analyst CryptoELITES predicts potential 17x rally to $0.00021 as SHIB has entered a “buy zone”
- SHIB supply on exchanges has fallen to record lows, possibly setting up for a supply squeeze
- Open interest in SHIB has increased 43% in two weeks, reaching $135M
- SHIB is down 41.34% this year and 86.13% from its all-time high of $0.00008845
The Shiba Inu cryptocurrency has been struggling to gain momentum despite the broader meme coin market tracking Bitcoin’s recent surge to $88,000. Currently trading at $0.0000123, SHIB has experienced a recent dip of 2.8% while other meme coins have shown more positive price action.
Despite this current downtrend, some analysts see tremendous potential for the popular meme coin. A top crypto analyst has identified that SHIB has entered what they describe as a “buy zone,” potentially setting up for a significant price movement in the near future.
The total meme coin market capitalization has increased to $50 billion after gaining 3% in recent trading sessions. However, SHIB has yet to benefit from this broader uptrend, as it continues to trade within a consolidation pattern.
SHIB’s performance this year has been challenging. The token has declined 41.34% year-to-date and currently sits 86.13% below its all-time high of $0.00008845, indicating a long-term bearish trend for this Ethereum-based project.
SHIB Price
Technical Analysis Points to Potential Breakout
Technical indicators offer some hope for SHIB investors. The Simple Moving Average (SMA) is approaching a positive crossover on the daily chart, suggesting increasing bullish momentum for the second-largest meme coin.
The Relative Strength Index (RSI) has broken above the neutral point and is heading toward the overbought range, which could signal continued upward movement in the coming days.
If market conditions favor bulls, SHIB may break through its resistance trendline and target the $0.0000150 mark. Should positive sentiment strengthen further, the meme coin could test a higher target of $0.000020.
However, if bearish pressure returns, SHIB could pull back within its descending channel pattern and potentially drop toward a crucial support level of $0.00001025.
Supply Dynamics Support Bullish Case
Data from Santiment shows that the amount of SHIB supply held on exchanges has fallen to record lows. This reduction in available supply could create favorable conditions for a price surge if demand increases at current levels.
This supply dynamic supports the bullish case for SHIB, as limited available tokens could amplify any upward price movement triggered by renewed buyer interest.
The potential supply squeeze, combined with technical indicators showing possible bullish momentum, creates an interesting setup for the popular meme coin.
Rising Open Interest Signals Market Confidence
Another positive sign for SHIB is the increasing open interest in the token. Data from Coinglass reveals that SHIB’s open interest has jumped by 43% over the past two weeks, reaching approximately $135 million from around $94 million.
This surge in open interest indicates that futures traders are opening new positions on SHIB, reflecting optimism about an upcoming price move.
When open interest increases alongside other bullish indicators, it often signals that traders expect a strong trend to develop. However, this increased leverage activity could also lead to higher volatility for the token.
Analyst Predictions: 17x Rally Possible
According to crypto analyst CryptoELITES, SHIB’s current position in a “buy zone” could trigger a rally between 14x and 17x from current prices.
If SHIB were to surge by 17x from its current price of $0.0000123, it would reach approximately $0.00021. A 14x rally would push the token to around $0.00018.
For this bullish scenario to materialize, SHIB needs to hold support at the lower descending trendline. The upward movement would be confirmed if SHIB breaks through resistance at the 0.618 Fibonacci level of $0.00003.
After surpassing this level, SHIB could target the $0.000085 mark, potentially setting the stage for removing a zero from its price structure.
