Analysts noticed Shiba Inu (SHIB) has seen unusual strength recently, even as the broader crypto market enters chaos. Optimism for a massive price rally has emerged following a recent breakout from a falling wedge pattern. This technical development could be a sign that a bearish trend is turning into a bullish market and could see a strong price surge.
Technical analysis signals potential increase
On August 20, Shiba Inu broke out of a descending wedge pattern — a sign that bearish momentum was waning. According to crypto analyst Javon Marks, this breakout is a highlight in his report. He believes that SHIB could head straight for a massive rally with a price target in the $0.000081 region.
This would amount to a solid 430% increase from its current level of $0.00001327. Even with the recent market declines, the break above the upper trendline has kept SHIB consistent. Analysts are hopeful that as market conditions calm down, this technical shift points to a possible recovery.
Santiment Take and SHIB Price Prediction
On the other hand, however, investor sentiment is sending contrarian signals. On-chain market intelligence platform Santiment says there are many fear, uncertainty and doubt for Shiba Inu investors.
The population of holders holding less than 1 billion SHIB has fallen to its lowest level since last November. There has also been a fairly sharp drop in social media interest in SHIB. This could also signal a more negative mood among investors in general.
But the latest CoinCodex estimate indicates that Shiba Inu’s short-term approach is more conservative. With SHIB, the negativity is supposedly low as it is predicted to fall to almost -0.46%. The value on October 18, 2024, will be $0.00001323.
The current Fear and Greed Index of 45 reminds investors that fear is at an all-time high. The last 30 days reflect a rather meager number of green days at 16, and volatility in terms of price action is 4.52%. So, needless to say, the outlook for SHIB as of late has been mixed and uncertain.
Shiba Inu: Mixed Signals
Optimism and caution seem to be intertwined with the current situation of Shiba Inu. The market mood and short-term outlook are more pessimistic, although technical indicators point to the possibility of a strong recovery ahead.
These mixed signals should be carefully considered by investors and they may want to sit tight and wait for a few more of these signals before proceeding with their investments. As always, it is good to be informed and cautious to effectively navigate uncertain times.
Featured image from Pexels, chart from TradingView