Popular cryptocurrency analyst Ali Martinez has predicted a possible 20% rally for Shiba Inu (SHIB). Martinez based his analysis on technical indicators, sharing a 4-hour SHIB/USD chart that indicates the token is currently in a descending channel. According to him, this pattern may signal an upcoming breakout, propelling SHIB to higher values.
What Are Technical Indicators Saying?
A descending channel is identified when two downward trend lines are drawn above and below the price. The upper trend line acts as resistance, while the lower one serves as support. Martinez noted that Shiba Inu has formed lower highs and lower lows along five trend lines, which could mean that a breakout is imminent.
As of now, SHIB is trading at $0.0000236, marking a 7.42% increase over the last 24 hours. If this trend persists, SHIB could touch $0.00002954 in the near future. Additionally, the Market Value to Realized Value (MVRV) ratio supports this prediction. The MVRV ratio, which measures profitability, suggests that SHIB might be undervalued, thereby favoring a possible price increase.
Where Is Shiba Inu Heading Next?
The 30-day MVRV ratio for Shiba Inu stands at -1.239%, indicating that current holders would incur a loss if they sold their tokens now. Therefore, the downward trend might persist unless the ratio moves into positive territory, which would bolster the bullish outlook. The data also shows a significant reduction in the supply of SHIB on exchanges, suggesting that investors are holding onto the token, potentially reducing short-term selling pressure.
Key Takeaways for Investors
– Shiba Inu is in a descending channel, pointing to a potential breakout.
– A 7.42% rise in SHIB’s price over the last 24 hours could be the start of a rally.
– The MVRV ratio indicates SHIB might be undervalued, supporting a bullish outlook.
– The reduction in exchange supply suggests investors are holding SHIB long-term, minimizing short-term selling pressure.
If these trends continue, Shiba Inu could experience significant gains, reinforcing the optimistic forecasts put forth by analysts like Ali Martinez. Investors should keep an eye on technical indicators and market metrics to make informed decisions about their SHIB holdings.