Shiba Inu’s value has declined significantly over the past few months and is currently hovering at its lowest level since last September. SHIB decreased by over 60% from its peak in November, bringing its market cap to about $8 billion. This article explores why the Shiba Inu coin may surge by 150% soon.
Shiba Inu Price Technicals Point to a Surge
The daily chart shows that the SHIB token price has declined significantly in the past few months. It has decreased from $0.00003326 to the current $0.000013. It dropped below the crucial support at $0.00002170, the highest swing last September.
SHIB coin has formed a falling wedge chart pattern, which comprises two descending and converging trendlines. This wedge represents one of the market’s most bullish reversal chart patterns, suggesting a possible imminent surge as the lines are about to converge.
The two lines converge near the key support at $0.00001261, its lowest level in July, August, and September last year.
Shiba Inu has also formed a cup-and-handle chart pattern. This pattern consists of a horizontal trendline at $0.00002920 and the rounded bottom pattern. The wedge pattern forms part of the handle section.
The Shiba Inu price is near forming a bullish divergence pattern. The Percentage Price Oscillator (PPO) is moving upwards, and the Relative Strength Index (RSI) is continuing to rise.
Therefore, the coin will likely have a strong bullish breakout. The next point to watch is $0.00002920, up about 150% from the current level. A decline below the support at $0.000010 will invalidate the bullish outlook.
SHIB chart by TradingView
Potential Catalysts for SHIB Coin Price
Several factors could influence the Shiba Inu price. First, the coin could benefit from potential Federal Reserve interest rate cuts. Data shows that the US dollar index and bond yields have plunged to the lowest level in months. This is a sign that the market anticipates the Fed will start to slash rates, a potentially bullish sign.
Second, Shiba Inu’s price may benefit from a potential Bitcoin price surge in the coming months. Bitcoin has surpassed $90,000 and will likely reach above $100,000 soon. SHIB will perform well if Bitcoin surges to a new all-time high.
Further, SHIB may benefit from the upcoming rotation from the recently launched Solana meme coins to traditional ones. Many of these Solana meme coins have collapsed, and SHIB has a history of declining and rebounding.
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