Shiba Inu coin, the second-largest meme coin in the market, has recently experienced a 33% drop from its December highs. However, there are signs pointing to a potential 50% jump in its price in the near future.
One of the reasons for Shiba Inu’s underperformance compared to other meme coins like Fartcoin and Dogwifhat is believed to be the struggles of its layer-2 network, Shibarium. Despite nearing the milestone of 800 million transactions, the total transaction fees collected by the network have been on a decline. This has impacted the burn rate of SHIB tokens, as part of the transaction fees are used for burning tokens.
However, there is optimism surrounding Shiba Inu’s potential comeback as the overall cryptocurrency market rallies. Bitcoin is approaching the key resistance point of $100,000, and positive consumer inflation data is contributing to the bullish sentiment. Additionally, the upcoming inauguration of Donald Trump and the start of Paul Atkins’ era at the Securities and Exchange Commission are expected to have a positive impact on cryptocurrencies.
Technical analysis of Shiba Inu’s price chart shows promising signs for a potential rebound. The daily chart indicates the formation of a hammer or morning star candlestick pattern, which is typically seen as a reversal signal. Furthermore, a falling wedge chart pattern has emerged, consisting of converging trendlines, which is considered a bullish reversal signal. The Relative Strength Index has also formed a bullish divergence, suggesting a potential bounce back in price.
If Shiba Inu manages to break above its current level and reach last year’s high of $0.000033, it could see a 50% increase in its price. However, a drop below the key support level at $0.00001853 would invalidate this bullish view.
Overall, despite recent setbacks, Shiba Inu coin is showing signs of a potential strong comeback, and investors are keeping a close eye on its price movements in the coming days.