- Shib has declined by 1.30% over the past week.
- An analyst is eyeing a price to surge to a six months of $0.00003420.
Shiba Inu [SHIB], the second largest memecoin by market cap, has experienced a sustained period of difficulty. Over the past two months, the memecoin has experienced extreme volatility and sharp decline.
In fact, as of this writing, Shiba Inu was trading at $0.00001325. This marked a 1.30% decline on weekly charts.
Additionally, SHIB has dropped by 0.57% over the last month. The current market conditions suggest the memecoin has attempted to break out from the long descending channel.
This was evidenced by the fact that, since recording lower lows of $0.00001231 on 6th September, it has managed to record a local high of $0.00001411.
Thus, the recent market conditions have left analysts betting big on the meme coin. Crypto analyst Johncy Crypto has suggested an upcoming recovery citing a breakout from the falling wedge pattern.
What market sentiment says
In his analysis, Johncy Crypto observed that SHIB is breaking from the falling wedge pattern on the daily charts.
The analysts shared this observation on his X official page noting that,
“Shiba Inu is breaking a falling wedge pattern on the daily timeframe. Potential targets after a bounce from the support zone are:$0.00001610, $0.00002010, $0.00002380, $0.00002940, and $0.00003420.”
Source: X
Based on this analysis, the immediate target for the memecoin is $0.00001610, and in a very bullish scenario, it will hit $0.0003420.
In context, a breakout from the falling wedge is a bullish reversal suggesting that the downtrend is losing momentum and buyers are starting to regain control in the market which facilitates a price increase.
Thus, a breakout here will see SHIB prices rally reversing the bearish trend.
What SHIB charts suggest
As noted by the analysts, SHIB is breaking out from the current trend. This was illustrated with the latest, price action over the past week as the memecoin has attempted to form a bullish flag.
Therefore, the prevailing market conditions could set SHIB for a trend reversal.
Source: Santiment
For example, Shiba Inu’s funding rate aggregated by exchange has been largely positive for the past week. At press time, it’s positive at 0.003% suggesting long position holders are paying shorts.
This indicated a bullish market sentiment with many traders holding long positions rather than shorts. Thus, investors anticipate the prices to rise and are willing to pay a premium to hold their trade.
Source: Santiment
Additionally, SHIB’s price Daa divergence has been positive throughout the week. At the time of writing, it was 10.83%. This indicates the growing network demand and increased adoption although it’s yet to be reflected on price.
This suggests the memecoin is undervalued and could increase in the future since the network supports long-term price growth.
Source: Cryptoquant
Finally, over the past month, Shiba Inu’s exchange netflow has been largely negative. Over the past 24 hours, netflow has remained negative. This suggests that there are higher withdrawals from exchanges than deposits.
This is another bullish signal with investors moving their assets to cold wallets signalling long-term confidence.
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Simply put, market sentiment is shifting supporting SHIB price gains. If the current market conditions, the meme-coin will attempt the next significant resistance level around $0.00001483.
A breakout from this level will be the confirmation which will in turn strengthen the memecoin to reach $0.00001772.
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