Shiba Inu (SHIB) is showing signs of a major bullish breakout, with analysts predicting a significant upside for the altcoin. Multiple technical indicators suggest the possibility of substantial gains in the short term, with some experts forecasting price increases of over 50%, and even as high as 200%.
In a tweet on November 21, analyst Ali Martinez pointed out that SHIB has formed a bull flag pattern on its 1-day chart, a classic bullish signal in technical analysis. According to Martinez, a breakout above the pattern’s resistance could lead to significant short-term gains. He forecasts that SHIB could surge to $0.000037, a 54% rise from its current price, if it breaks and holds above the critical resistance level at $0.000025.
A more optimistic prediction came from independent analyst Javon Marks, who highlighted that SHIB has already broken out of a multi-month falling wedge pattern. This formation is considered a strong bullish signal, and Marks believes it could lead to a rally to $0.000081, a rise of more than 200% from current levels.
Current SHIB Price and Market Position
As of November 22, Shiba Inu was trading at $0.000026, up 2.2% over the past 24 hours. The meme coin’s market cap is currently over $14.5 billion, and it has recovered significantly, up more than 92% from its lowest point in August.
Bullish Catalysts Driving SHIB’s Momentum
Several factors are fueling SHIB’s recent price rebound. One major catalyst is the significant increase in token burns. According to Shiburn data, SHIB token burns spiked by 2,200% on Thursday, with 14.58 million tokens removed from circulation. As of now, over 410.7 trillion SHIB tokens have been burned, reducing the circulating supply to 583.8 trillion.
Additionally, activity on Shiba Inu’s Layer-2 blockchain, Shibarium, has been growing steadily. Shibarium has processed more than 541 million transactions in recent months. The increased activity is beneficial for SHIB, as transaction fees in BONE tokens are partially converted into SHIB and burned, further decreasing supply.
Another bullish sign for SHIB is the accumulation of tokens by large holders or “whales.” Data from IntoTheBlock revealed that net inflows from large holders surged by 256% on Thursday, as whales purchased 393.48 billion SHIB tokens, worth more than $9.8 million. This compares to a $6 million sell-off the previous day, indicating increased demand from institutional investors.
The Bitcoin Effect on SHIB’s Rally
SHIB’s price momentum could also be supported by the broader market trend, particularly Bitcoin’s recent rally. Bitcoin’s surge past $99,000 has sparked renewed bullish sentiment across the cryptocurrency space. This has contributed to a 5.3% increase in the overall market capitalization of altcoins, benefiting SHIB along with other tokens.
Technical Indicators Remain Bullish
On the technical front, SHIB’s price is trading above both its 50-day and 200-day exponential moving averages (EMA), suggesting that the bullish trend remains intact for the short term. The Relative Strength Index (RSI) is currently at 59, indicating that SHIB still has room for growth and has not yet reached overbought conditions.
Additionally, SHIB’s price is hovering above the middle Bollinger Band, a sign of rising buying pressure. This reinforces the bullish outlook, suggesting that SHIB could continue its upward momentum in the coming days.
Given these positive technical indicators and market catalysts, many analysts are optimistic that SHIB could soon test its year-to-date high of $0.000036, with further gains possible if the bullish trend continues.