Shiba Inu (SHIB) price eyes a massive price surge in the near term after a bullish pattern appeared on the higher timeframe chart. Additionally, despite the sluggish performance, the SHIB network has recorded a notable uptick in activity, suggesting that fundamentals are strong to support an upward recovery for the meme coin.
SHIB value today remains under a bearish trajectory with a 2.7% drop in 24 hours. However, a 15% uptick in trading volumes per CoinMarketCap data suggests that some traders may be buying the dip.
Shiba Inu Price Gears for 4x Surge
The weekly chart for SHIB price shows that this top meme coin is at a critical juncture that may precede a strong upward trend if the bullish momentum grows strong. The potential uptrend is seen with the formation of a double-bottom pattern that often signals that the existing trend is about to shift from a bearish one to a bullish one.
To confirm this double-bottom pattern, Shiba Inu price needs to create a higher high and form an ascending trendline that may push it to the neckline resistance of $0.000033. If it can overcome this resistance, SHIB may record a 4x rally from its current price to $0.000045.
The AO histogram bars have flipped green, albeit remaining in the negative region, an indication that the bearish momentum is growing weak. However, a strong uptrend will occur if the indicator moves to the positive side. Meanwhile, the MACD is about to form a buy signal if it crosses above the signal line and extends the upward momentum past the zero line.
The above bearish thesis will be invalid if the price of Shiba Inu falls below the critical support level of $0.000012. If it drops below this level, it will reach its lowest point in more than one year, and this may trigger panic selling and accelerate the downtrend.
Shibarium TVL Approaches $3M Milestone as Transactions Soar
The Shibarium TVL has ballooned significantly in recent weeks, and it is now approaching a critical $3M milestone, suggesting that decentralized finance (DeFi) activity in the network is blossoming. Despite the headwinds causing a weak recovery in the Shiba Inu price, the metric has surged by more than $670,000.
The growth of Shibarium’s TVL tends to coincide with a spiking SHIB burn rate. According to data from shibburn, the weekly burn rate is up by more than 350%, with more than 329 million being removed from circulation.
Meanwhile, the Shiba Inu transaction volumes recently surged by nearly 300% in 24 hours from 1.77 trillion to 6.93 trillion tokens. This increase further supports the bullish Shiba Inu price prediction that the meme coin eyes a 4x rally in the near term.
Therefore, as Shibarium’s TVL continues to grow, causing a spike in the burn rate and transaction volumes, it is clear that the Shiba Inu price may be on an upward trajectory. The double-bottom pattern hints that an upward recovery may push the meme coin’s value to as high as $0.000045, triggering a 4x rally.
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