- Shib is down 1.30% in the past week.
- One analyst expects the price to rise to $0.00003420 in six months.
Shiba Inu [SHIB]the second largest memecoin by market capitalization, has had a sustained period of trouble. Over the past two months, the memecoin has experienced extreme volatility and a sharp decline.
In fact, at the time of writing, Shiba Inu was trading at $0.00001325. This marked a drop of 1.30% on the weekly charts.
Furthermore, SHIB is down 0.57% over the past month. Current market conditions suggest that the memecoin has attempted to break out of the long downhill channel.
This was proven by the fact that since the lower low of $0.00001231 was recorded on September 6, it has managed to record a local high of $0.00001411.
So, recent market conditions have caused analysts to bet big on the meme coin. Crypto analyst Johnny Crypto has suggested an impending recovery, citing a breakout from the falling wedge pattern.
What market sentiment says
In his analysis states Johnny Crypto noted that SHIB is breaking the falling wedge pattern on the daily charts.
The analysts shared this observation on its official X page, noting that:
“Shiba Inu breaks a falling wedge pattern on the daily time frame. Potential targets after a recovery from the support zone are: $0.00001610, $0.00002010, $0.00002380, $0.00002940 and $0.00003420.”
Source:
Based on this analysis, the immediate target for the memecoin is $0.00001610, and in a very bullish scenario it will reach $0.0003420.
In context, a breakout from the falling wedge is a bullish reversal, indicating that the downtrend is losing momentum and buyers are starting to regain control of the market, allowing for a price increase.
So, a breakout here will cause SHIB prices to rise and reverse the bearish trend.
What SHIB cards suggest
As noted by the analysts, SHIB breaks from the current trend. This was illustrated with the latest price action this past week, as the memecoin attempted to form a bullish flag.
Therefore, prevailing market conditions for SHIB could trigger a trend reversal.
Source: Santiment
For example, Shiba Inu’s funding rate, aggregated by exchange rate, was largely positive last week. At the time of writing, it is positive at 0.003%, indicating that long position holders are paying short.
This indicated bullish market sentiment, with many traders holding long positions instead of short positions. So investors expect prices to rise and are willing to pay a premium to maintain their trade.
Source: Santiment
Moreover, SHIB’s price-Daa divergence was positive all week. At the time of writing this was 10.83%. This indicates the growing demand for networks and increased acceptance, although this is not yet reflected in the price.
This suggests that the memecoin is undervalued and could rise in the future as the network supports long-term price growth.
Source: Cryptoquant
Finally, Shiba Inu net AC has been largely negative over the past month. Over the past 24 hours, the net flow has remained negative. This suggests that there are more withdrawals from exchanges than deposits.
This is another bullish signal with investors moving their assets to cold wallets, indicating long-term confidence.
Is your portfolio green? View the SHIB Profit Calculator
Simply put, market sentiment is shifting, supporting SHIB’s share price gains. If current market conditions persist, the meme coin will attempt the next significant resistance level around $0.00001483.
A breakout from this level will be the confirmation that will in turn strengthen the memecoin to reach $0.00001772.
