Shiba Inu (SHIB) is showing signs of a potential explosive rally, with analysts eyeing a remarkable 493% surge to the $0.00004 territory. The key to this bullish outlook lies in SHIB’s ability to secure a confident weekly close above the middle band of the Bollinger Bands indicator.
Recent Performance and Market Conditions
Following five consecutive weekly green candles from mid-October to early November amid broader market growth, SHIB surged to $0.00000965. However, over the past two weeks, the token experienced a 12% decline, underperforming amid a relatively stagnant market. While Bitcoin reclaimed the $38,000 territory, Shiba Inu faced unique selling pressure from profit-takers, hindering substantial growth.
Critical Position and Bullish Momentum
Despite recent selling pressure, SHIB is currently positioned at a crucial juncture indicating potential bullish momentum. The focus is on achieving a confident weekly close above the middle band of the Bollinger Bands, a simple moving average (SMA) representing the prevailing market trend. Such a close above suggests an uptrend, and historical data indicates significant rallies following these occurrences.
Historical Context and Previous Bullish Closes
SHIB has recorded confident weekly closes above the middle band twice in the past two years. The first instance was in early October 2021, preceding a staggering 939% rally from October to the ATH of $0.00008845 at the end of that month. The second confident close occurred in January 2023, leading to a 47% surge to this year’s peak of $0.00001575.
Anticipation for a 493% Increase
While SHIB recently recorded a bullish close above the middle band, analysts note that it lacked complete confidence. The focus is now on replicating a confident close similar to the January move, potentially setting the stage for a 493% increase from the current position of $0.00000833. If achieved, this would bring SHIB to the $0.00004 price territory, last seen in November 2021.
Shiba Inu’s current position and the potential for a confident weekly close above the middle band signal optimism among traders and investors. With historical data supporting significant rallies following such events, the anticipation is high for SHIB to replicate previous surges and potentially register a remarkable 493% increase. Investors will closely monitor SHIB’s performance in the coming weeks to gauge the likelihood of this bullish scenario unfolding.