The cryptocurrency SHIB, the second-largest meme coin, has surged by 37% in the last month. Analysts suggest that a significant rally might be underway.
SHIB Growth Forecast
X user Javon Marks noted a large formation of an Inverse Head & Shoulders pattern on SHIB's price chart, indicating "notable strength." This pattern might trigger a rally of more than 400%, reaching a technical target of $0.000081. Another analyst, using the pseudonym Friedrich, also expressed a bullish view but warned investors about using leverage.
Indicators and Support
Recent developments, such as an increase in the SHIB token burning mechanism, bolster bullish sentiment. Over the last week, the burn rate has surged nearly 200%, with about 135 million tokens sent to an inaccessible address. Growing interest in the asset is also evident, with Google searches related to SHIB reaching a five-month high.
Drawbacks and Risks
Not all indicators are positive. CryptoQuant data indicates that SHIB's exchange netflows have been positive over the past week, signaling rising short-term selling pressure. This could suggest potential risks for short-term investors.
While some analysts predict significant growth for SHIB, it is important to consider both positive and negative signals emanating from the market. Investors should be cautious and prudent in their decisions.
