Shiba Inu (SHIB), the meme-fueled cryptocurrency, might be waking up from its slumber. Crypto analyst Dami DeFi has identified a bullish technical pattern that suggests a potential 50% price increase in the near future.
Falling Wedge Hints at Reversal
Dami’s analysis focuses on a “falling wedge” pattern forming on Shiba Inu’s daily chart. This pattern, characterized by two converging downward trendlines, often precedes a trend reversal. In SHIB’s case, a breakout from this wedge could signal a surge towards higher levels.
Recall Shiba Inu’s impressive 380% rally in late February, culminating in a yearly high of $0.00004567. However, broader market turbulence and waning momentum led to a significant correction, with SHIB losing nearly half its value since the March peak.
Dwindling Selling Pressure: A Silver Lining?
Dami suggests the recent consolidation might be a positive sign. The analyst points to a sustained increase in exchange outflows since May 5th, indicating a potential slowdown in selling pressure. Additionally, on-chain data reveals a significant drop in Shiba Inu reserves on exchanges since February. This suggests investors are moving their SHIB holdings to self-custodial wallets, potentially for long-term investment.
Also Read: Will Shiba Inu (SHIB) Make You a Millionaire? Analyst Predicts 125% Surge After 280% Q1 Rally
A Target of $0.000034
Based on the falling wedge pattern and decreasing selling pressure, Dami predicts a significant price surge for Shiba Inu once it breaks out. The analyst’s immediate target sits at $0.00003456, representing a 50% increase from the current price of $0.00002319.
While the broader market remains slightly bearish, SHIB’s derivatives data presents a mixed picture. Trading volume has dropped by 26%, while Open Interest shows a small increase. Shiba Inu’s immediate hurdle is to surpass the $0.00002350 resistance level to prevent further declines.
Looking Ahead
Dami DeFi’s analysis offers a glimmer of hope for Shiba Inu investors. The falling wedge pattern and decreasing exchange reserves suggest a potential trend reversal. However, whether SHIB can achieve the predicted 50% surge and maintain its upward momentum remains to be seen. Only time will tell if the “Dogecoin killer” can rise from the ashes and reclaim its lost glory.
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