The Shiba Inu price remains in a tight range this week, and Bollinger Bands point to an eventual bullish breakout. On Thursday, the SHIB token was trading at $0.000012, a few points above the year-to-date low of $0.00001030. This article explores the potential scenarios for the SHIB coin in the short term.
Shiba Inu Price Prediction
The daily chart shows that the SHIB price is sending mixed signals as it hovers near its lowest level this year. On the positive side, the three lines of the Bollinger Bands indicator are squeezing, while the standard deviation indicator has fallen. When this happens, an asset tends to have a strong bullish or bearish breakout.
Further, the Shiba Inu price has formed a small double-bottom pattern at $0.000010. Its neckline is at $0.00001560, up 30% above the current level. This small double-bottom is part of the formation of a giant triple-bottom pattern whose neckline is at $0.000033.
Shiba Inu has also formed a small inverse head and shoulders pattern, a popular bullish reversal sign. Therefore, the coin will likely have a strong bullish breakout as bulls target the initial neckline at $0.00001562.
A move above that level could indicate further upside potential, reaching the 50% retracement level at $0.000022, which is an increase of 87% from the current level. A move below the key support at $0.00001080 will invalidate the bullish view.
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Potential Catalysts for SHIB Price
The main catalyst for the Shiba Inu price is Bitcoin’s performance. As BanklessTimes predicted, a strong Bitcoin breakout will trigger more upside for Shiba Inu and other altcoins.
Furthermore, SHIB will be boosted by a significant increase in the burn rate. Data shows the daily burn rate rose 460% to over 62.3 million on Thursday. This significant increase in the burn rate has reduced the total circulating supply to 584 trillion.
Additionally, the Shiba Inu price may surge due to the increasing Mean Dollar Invested Age (MDIA), which has risen to 147, the highest level since March 12, from a year-to-date low of 87.
SHIB is also cheap, which may attract more buyers later this year. As shown above, the MVRV-Z score has dropped to minus 2.28. Historically, the coin often bounces back whenever it drops to these levels.
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