In an analysis, Moataz “Eljaboom” Elsayed, cryptocurrency analyst and Forbes 40 Under 40 nominee, forecasts a significant escalate in the value of the Shiba Inu (SHIB). According to Elsayed, the meme-based cryptocurrency is poised for a potential surge that could push its value to $0.00024, an unprecedented escalate of 1.105% from its current level.
Shiba Inu price will skyrocket by 1,100%?
While reviewing SHIB price activity on the weekly chart (SHIB/USDT), Elsayed pointed out a repeating pattern that initially occurred in the second quarter of 2021, shortly after Binance, a major cryptocurrency exchange, began trading SHIB. According to him, the Shiba Inu’s historical data shows a pattern that, if repeated, will take its price to novel heights. He noted that the cryptocurrency saw a significant escalate to $0.00005 during the week of May 10, 2021, following its listing on Binance.
Elsayed’s analysis highlights a critical period in SHIB market behavior. After hitting a high at $0.00005, the token underwent a correction, settling below the key support range of $0.00001784 to $0.00001995 for almost 120 days. However, another breakout occurred in October 2021 as the broader bull market gained momentum, catapulting the SHIB Index 343.64% from support to a high at $0.00008854.
History repeats itself 👀 #SHIB pic.twitter.com/zeeXVWhpKZ
— Elja (@Eljaboom) June 8, 2024
The subsequent correction and entry into a bear market, exacerbated by the collapse of the Terra ecosystem in May 2022, resulted in SHIB prices falling below key support levels. The rate remained below these levels for 658 days, barely breaking the $0.00001 mark. However, a resurgence in March this year saw SHIB surge over 370% to a yearly high of $0.00004567.
Based on this data, Elsayed predicts a similar, if not clearer, trajectory for SHIB in the near future. He estimates that another breakout could push SHIB’s price up to $0.0002404, effectively increasing its market capitalization to $141.6 billion. According to the cryptocurrency analyst, given the cyclical nature of the cryptocurrency market, this could happen.
On the SHIB/USD daily chart, the Shiba Inu price is currently in a consolidation phase, after rising significantly to this year’s high in early March. Despite breaking out of a symmetrical triangle formation in mid-May, the SHIB Index failed to maintain a close above the 0.382 Fibonacci retracement level of $0.00002883.
As a result of this rejection, the price has fallen below the Fibonacci level of 0.236 and is currently struggling to establish support at the 100-day exponential moving average (EMA). Maintaining the daily close above $0.00002326 is crucial to prevent a potential further decline towards the 200-day EMA at $0.00001977.
Featured image created with DALL·E, chart from TradingView.com
