Shiba Inu (SHIB) is hinting at a potential surge, with analysts pointing to a rare convergence of technical indicators that could propel the meme coin towards its yearly peak.
The cryptocurrency market is currently in a recovery phase, with Bitcoin (BTC) nearing a retest of the $65,000 resistance level. SHIB has capitalized on this upswing, recording a 19.68% gain in the last week, making it the second-highest gainer among the top 15 cryptocurrencies.
However, despite the positive trend, investor participation in the Shiba Inu rally seems muted. Data suggests a decrease in buying pressure compared to previous uptrends. This could be attributed to investor uncertainty regarding the sustainability of the current rally. Shiba Inu’s 24-hour trading volume remains low, averaging around $262 million over the past week.
For a significant boost, SHIB requires a confluence of rising trading activity and volatility. Historically, substantial price spikes for Shiba Inu have coincided with surges in both daily active addresses and daily volatility. This pattern was observed in May 2021 and October 2021, leading to price jumps of $0.00003 and $0.00008845 respectively.
While the recent volatility has reached a 3-month high of 0.0574, it hasn’t been accompanied by a similar increase in active addresses, which currently stand at a meager 3,974.
If a similar convergence occurs during the current rebound, it could propel SHIB to even greater heights. Currently trading at $0.000019, analysts anticipate an initial climb above $0.00002. Data from IntoTheBlock suggests potential resistance between $0.00002 and $0.000025, followed by stronger resistance zones at $0.000025-$0.00003 and $0.00003-$0.000036.
Overcoming these hurdles could pave the way for a test of the $0.000045 resistance level, a 129% increase from the current price. This zone holds 9.58 trillion tokens across 56,990 addresses.
While the possibility of a substantial rally is enticing, it’s crucial to remember that the cryptocurrency market remains volatile, and unforeseen factors can impact price movements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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