Three Reasons Why Shiba Inu Price Could Surge by 60% in the Near Future
Shiba Inu’s value has plummeted into a bear market this year, erasing $12 billion as its market capitalization fell to $7.4 billion.
The decline of Shiba Inu (SHIB) occurred alongside Bitcoin (BTC) and other meme coins due to worries about a potential self-induced recession in the U.S.
However, there are indications that the ongoing decline in SHIB’s price might be approaching its conclusion. Recently, the rate at which SHIB coins are being burned has skyrocketed. According to ShibBurn, the burn rate surged by more than 62,000% within the last 24 hours.
This increase in the burn rate was mainly due to one user who transferred nearly 460 million SHIB coins to a dead wallet. Since its inception, over 410 trillion SHIB coins have been incinerated, reducing the circulating supply to approximately 584 trillion.
Additionally, Shiba Inu’s price might gain from macroeconomic influences. There is a possibility of a rebound in the stock market following recent drops attributed to Trump’s tariff policies.
Historically, both stock and crypto markets tend to decline when risks increase but often recover shortly afterward. A notable example is the immediate crash of both markets following the declaration of COVID-19 as a pandemic, which quickly rebounded afterward.
A potential driver for change could be the forthcoming Federal Reserve interest rate decision. With recession risks mounting, the Fed might indicate further rate cuts this year. Cryptocurrencies like Shiba Inu and Bitcoin typically perform well during periods of interest rate reductions.
Technical Analysis of Shiba Inu’s Price
Technical metrics suggest that SHIB may be on the verge of a significant bullish breakout this year. The daily chart indicates that Shiba Inu has been establishing a falling wedge pattern, which is characterized by two descending and converging trendlines.
These trendlines have converged at $0.00001260, aligning with the lowest price swings from July, August, and September last year, making the current price a vital support level.
The Relative Strength Index has edged slightly above the descending trendline formed by the highest swings since last December. Similarly, the Percentage Price Oscillator has exhibited a bullish crossover.
In conclusion, Shiba Inu’s price is likely to experience a robust bullish breakout, with the next key psychological level to monitor being $0.000020, representing a 60% increase from the current level.