There is a feeling in the markets that Shiba Inu ( SHIB ) will extend its recent gains even further. According to technical analysis, the meme coin is stated to be ready for a 30% rally. Moreover, increasing buying pressure and strong support levels support this rise. So, will SHIB go beyond the price it recorded this week? Here are these possibilities and technical analysis.
Shiba Inu Creates Fincal and Handle Formation
First of all, on the daily chart, SHIB has formed a “cup and handle” pattern. This pattern is characterized by the price first forming a “U” shaped bottom and then experiencing a slight decline (cup). Also, this structure usually signals that an uptrend will continue.
In this context, from mid-July to early October, Shiba Inu formed the “handle” part of this formation, moving between $0.000013 and $0.000018. The cup began to form at the beginning of last month. It is also still on the chart. However, if buying pressure increases, the value of SHIB will rise above $0.000019.
Buying Pressure Increases
In addition, the Money Flow Index (MFI) also shows that buying pressure on the Shiba Inu is increasing. The MFI is an oscillator that evaluates the buying and selling pressure of an asset by combining price and volume data . This indicator, which moves between 0 and 100, indicates overbought conditions at values above 80, and oversold conditions at values below 20.
Moreover, MFI is currently trending higher, indicating that investors are buying SHIB. If this trend continues, the meme coin could see further increases in value. However, if MFI falls, selling pressure could kick in and change price estimates.
Shiba Inu Price Prediction: Target $0.000025
On the other hand, SHIB is facing resistance at its current value on the daily chart. However, it could break through this barrier thanks to the increasing buying pressure. Moreover, analysis using Fibonacci retracement levels suggests that SHIB’s price could rise to $0.000025.
Fibonacci retracement levels are horizontal lines that help determine support and resistance points. Currently, Shiba Inu has bounced off the 61.8% retracement level. This gives a positive signal for the price to continue its upward movement. However, if it cannot break $0.000020, the price is likely to fall to $0.000015. As we reported at Kriptokoin.com, memecoins are quite risky. It is important to do your own analysis when investing.
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