Shiba Inu Hits Key Inflection Point for Potential 40% Rise

Shiba Inu (SHIB), the second-largest memecoin by market capitalization, has just reached a key inflection point that helped trigger a 100% price boom in January 2022. The cryptocurrency now eyes a potentially similar boom in the remainder of 2024, with the formation of a so-called Doji candlestick pattern furthering the bullish outlook. Let’s delve into these promising signals in detail.

SHIB Price Fractal Analysis: Bullish Reversal Ahead?

At the core of SHIB’s bullish outlook is the significant trading activity around the $0.000017 price level. The chart below demonstrates the same, showing how the said level has served as key support during downtrends and as key resistance during uptrends.

For instance, Shiba Inu’s price bounced by over 100% in January 2022 after testing the $0.000017 level as support. A similar scenario appeared earlier this year, in April 2024, wherein the same level capped SHIB’s downside attempts, leading to a circa 60% rebound a month later.

The memory of past significant price movements generally influences crypto traders’ behavior. In January 2022, the substantial 100% price bounce from this level left a strong impression. Similarly, the 60% rebound in April 2024 reinforced the importance of this level, raising the possibility of traders remembering these moves and, thus, acting on the belief that history might repeat itself.

However, there’s one instance in May 2022 wherein SHIB decisively broke below the $0.000017 support level to fall by over 60% afterward. This breakdown occurred in the aftermath of the Terra collapse. Since a black swan event of such a massive scale is not around anymore in 2024, and the market is instead focusing on a potential “memecoin supercycle,” SHIB’s possibility of undergoing a strong breakdown move below the $0.000017 support level seems low.

The Doji Candlestick and Moving Average Support

More cues supporting Shiba Inu’s bullish fractal analysis above come from two technical indicators. One of them is the ongoing formation of a Doji candlestick pattern on SHIB’s weekly chart.

For the unversed: A Doji pattern occurs when a candlestick’s open and close prices are nearly identical, indicating that neither the buyers nor the sellers gained control during the period. When found at the top of an uptrend or the bottom of a downtrend, a Doji can signal a potential reversal.

SHIB is forming a similar candlestick pattern for the week ending June 30, which may lead to a bullish reversal in July.

In addition, the Shiba Inu price is showing signs of bullish rejection near its 50-week exponential moving average (50-week EMA), aligning with the 0.0 Fibonacci retracement level of around $0.00001730 — just above the inflection point discussed above. This support confluence is also raising SHIB’s potential to undergo a sharp rebound in July.

Should a rebound occur, SHIB’s next upside target will be around its 0.236 Fib line at $0.00002396, up about 40% from the current price levels. If not, SHIB risks a drop toward the next support line at around $0.00001400, which served as resistance in the October 2022-February 2023 period.

Competition from rivaling memecoins like PEPE could also hurt SHIB’s upside prospects.

SHIB’s Whale Trend Looks Healthy, Meanwhile

From an on-chain analysis perspective, the Shiba Inu network is witnessing a steady growth in the SHIB supply held by its richest addresses, signaling accumulation throughout 2024.

As of June 28, the total Shiba Inu held by entities with a balance of over 1 billion SHIB (gray) was 96.88% of the total circulation compared to around 96.5% at the year’s beginning. That includes a period of a substantial rise in March, just two months ahead of the fourth Bitcoin halving that boosted upside sentiment across the crypto market, including memecoins.

Conversely, the supply held by entities with balances between 100 million and 1 billion SHIB has decreased. This decline suggests accumulation, particularly when viewed alongside the increase in holdings by the 1 billion SHIB-plus cohort.