Is a Mega Rally About to Begin?

TL;DR

• Analysts believe SHIB can soon pump by double and even triple digits.
• The resurgence of Shiba Inu’s burning mechanism and the sharp rebound in Shibarium activity support the bullish thesis, but the RSI has reached near 70, signaling potential pullback.

SHIB to Take Center Stage Again?

The second-largest meme coin has not performed well in the past few months and is currently trading significantly below the local peaks reached at the end of 2024. However, it managed to close last week in green territory, climbing by nearly 5% to approximately $0.00001258 (per CoinGecko’s data).

Some renowned analysts believe the resurgence is yet to reach impressive dimensions. On September 7, Carl Moon – an X user with around 1.5 million followers – claimed that a potential horizontal triangle is forming on SHIB’s daily price chart. That said, he envisioned a 34% pump to around $0.0000403 in the short term. 

JAVON MARKS was even more optimistic, arguing that “a massive bullish reversal could still be in the cards,” which can lead to a 150% price explosion to $0.000032. It is important to note that the analyst has been consistently outlining this forecast in the past months.

“Shiba Inu confirms a bullish pattern in a Regular Bull Divergence with the MACD Histogram! What this suggests is a major bullish reversal back to the upside, which can consist of an over 163% move back into the $0.00003s, and that may only be the start,” they said at the start of September.

Other market observers who recently touched upon the meme coin include Mark.eth and CryptoELITES. The former thinks SHIB can “make you rich” like no other altcoin, whereas the latter predicted a staggering 17x surge to a new historical peak of $0.00023. 

Examining Some Indicators

Shiba Inu’s burn rate exploded by over 340,000% in the past 24 hours, resulting in approximately 1.3 million tokens sent to a null address. The program is specifically designed to reduce the overall supply of the meme coin, which can lead to a price rally (if demand stays the same or heads north).

The layer-2 blockchain solution Shibarium also witnessed a substantial revival. Daily transactions processed on the protocol skyrocketed above 1.2 million on September 6 and nearly 500,000 the following day, marking a massive increase compared to the sub-20,000 transactions recorded towards the end of August.

Nonetheless, some metrics hint at a bearish scenario. SHIB’s Relative Strength Index (RSI), which measures the speed and magnitude of the latest price changes, has reached almost 70. This suggests the asset could be overbought and poised for a correction. On the other hand, ratios below 30 are interpreted as a buying opportunity.