The price of Shiba Inu could continue to rise in the short term. In a post on X, Javon Marks, a popular cryptocurrency analyst, predicted that the coin would soar by 246% to $0.00003. He pointed out the formation of a bullish divergence pattern, which occurs when an oscillator rises while an asset falls.
Technical data suggests that the coin has greater bullish potential in the short term. The daily chart shows that the token formed a descending wedge pattern, which is very common. This pattern consists of two descending and converging trend lines. A bullish breakout usually occurs when both lines approach their convergence.
The price of Shiba Inu also surpassed the Supertrend indicator for the first time since July of last year. The last time this happened, the token rallied 40%. It also surpassed the 50-day exponential moving average (EMA), while key oscillators like the relative strength index (RSI) and the stochastic oscillator continued to rise.
Therefore, the most likely price forecast for SHIB is bullish, with an immediate target at $0.00001484, its highest point on September 13. This price target is approximately 52% above the current level.
On the other hand, a drop below the support level at $0.00000684 will invalidate the bullish outlook.
The main bullish catalyst for the SHIB token is the ongoing rally in the cryptocurrency market that has affected Bitcoin and other altcoins. This increase is due to the January Effect and investors buying during dips.
Third-party data shows that key metrics could support the rally. One of these is the growing open interest, which has maintained a strong bullish trend, reaching a peak of $145 million, its highest level since October 10. This trend has been strong after bottoming out at $60 million in November.
More data shows that the Cryptocurrency Fear and Greed Index has continued to rise. It has gone from a low of 10 in December to the current 42. Meme coins usually perform well when there is greed sentiment in the market.
Shiba Inu has also benefited from the ongoing rally of meme coins. Data shows that most meme coins, like Pepe, Dogwifhat, and Bonk, have surged, with the market capitalization of all these tokens exceeding $52 billion.
