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Is SHIB on the Verge of a Rally? Key Factors Suggest Positive Momentum Ahead

Published 05/02/2024, 16:04
Updated 05/02/2024, 16:15
Is SHIB on the Verge of a Rally? Key Factors Suggest Positive Momentum Ahead
SHIB/USD
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  • Shibarium’s milestone of three million blocks hints at increased demand for SHIB.
  • A 99% surge in whale activity suggests a potential market shift and an upturn in SHIB’s valuation.
  • SHIB’s increase in trading volume signals growing investor interest despite a minor price setback.

Shiba Inu (SHIB) has recently caught the attention of investors and enthusiasts alike. Despite a minor setback of 0.56% in its value over the past 24 hours, bringing the price to $0.000008991 at press time, the token demonstrates promising signs of a bullish trajectory. This sentiment is bolstered by a 12.31% increase in trading volume, amounting to $71,587,618, suggesting a heightened investor interest.

SHIB/USD 24-hour price chart (source: CoinStats)

Over the past month, Shiba Inu’s price has been dramatic, oscillating between $0.00000846 and $0.00001049. However, market analysts speculate this could lead to a potential floor price, setting the stage for an impending rebound. The anticipation is for SHIB to initially target the $0.00001 mark, with aspirations to ascend to its all-time high.

Is Shibarium the Catalyst?

The Shibarium platform, Shiba Inu’s layer-2 scaling solution, remains a factor in the token’s performance. The network recently surpassed a milestone of three million blocks, underscoring its growing adoption and utility. This development not only showcases Shibarium’s competitive edge against rivals like Polygon and Arbitrum but also hints at increased demand for SHIB, potentially mitigating sell-off pressures and propelling the token toward notable gains.

Concurrently, a surge in whale activity has also been observed, with a 99% increase in large transaction volumes, indicating a robust engagement from substantial investors. This uptick, represented by 973.25 billion SHIB transactions, equals approximately $8.77 million. Such movements often herald significant market shifts, suggesting a potential uplift in SHIB’s market valuation.

SHIB/USD Technical Analysis

The Relative Strength Index (RSI) rating of 43.76 and upward movement on the SHIBUSD price chart indicate that the SHIBUSD price is gaining momentum and may continue to increase in the near future. This implies that traders’ enthusiasm is increasing, which might lead to greater purchasing activity and higher prices. If the RSI rating continues to rise and crosses 50, it will confirm the positive momentum and may draw even more traders trying to profit from the rising trend.

SHIB/USD24-hour price chart (source: TradingView)

Furthermore, the Moving Average Convergence Divergence (MACD) rating of -0.00000019, above the signal line, supports the notion of a prospective upward rise in the SHIBUSD price. This crossing is a positive indicator, indicating that purchasing pressure is building and may lead to an additional price rise.

Moreover, the histogram trend exhibits positive momentum, with bars rising above the zero line. This trend implies a rising positive trend and signals that purchasing activity will likely continue soon.

The post Is SHIB on the Verge of a Rally? Key Factors Suggest Positive Momentum Ahead appeared first on Coin Edition.

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