Renowned analyst SHIB Knight predicts that Shiba Inu (SHIB) will reach a new yearly high of $0.00006 following a significant breakthrough of a major resistance level, resulting in a 17% surge over three days.
After weeks of trading within a narrow range, Shiba Inu is now showing signs of a recovery. The recent upward momentum has allowed SHIB to retest the price threshold of $0.000029, a level not seen in almost two months.
The recent surge is part of a three-day winning streak, during which Shiba Inu has experienced an impressive 17.56% increase. This is the largest gain over a three-day period since late February when SHIB saw a price uptrend that led to a 370% surge, reaching its yearly high of $0.000045.
SHIB Knight, who has been closely monitoring Shiba Inu’s price movements, believes that this ongoing uptrend could result in similar gains. Through analysis, the market observer confirms that the recent price rally has successfully broken above a resistance trendline that has been hindering SHIB for over two months.
The resistance trendline formed following SHIB’s drop below the $0.00004567 high on March 5. Previous attempts to breach it were met with strong resistance from bears, resulting in lower highs. However, on May 15, Shiba Inu managed to break through the $0.000025 territory, recording a significant intraday gain of 9.88%. Despite this breakthrough, SHIB remained grounded due to a battle at this level, with concerns of a drop below it if selling pressure increased.
The recent 17% surge over three days has helped Shiba Inu confidently push above this area, indicating the possibility of an imminent price upswing. SHIB Knight believes that this upswing could potentially drive Shiba Inu to a new yearly high of $0.00006, a level last seen in November 2021.
To reach this level, Shiba Inu would need to increase by 152% from its May 24 trading value of $0.00002375. Interestingly, the necessary gains to reach $0.00006 have reduced due to SHIB reclaiming the $0.000028 territory.
Currently priced at $0.00002876, Shiba Inu would only need a 108% rise to reach $0.00006, significantly lower than the 370% increase witnessed from late February to early March. Furthermore, despite the recent spike, SHIB’s daily Relative Strength Index (RSI) stands at 65.97, well below the overbought threshold of 70, suggesting that Shiba Inu still has room for further price growth.
According to The Crypto Basic, Shiba Inu recently experienced a massive transaction volume of 5.3 trillion SHIB. Additionally, data from CryptoQuant reveals that SHIB saw over 1 trillion tokens in exchange netflow. While this could potentially increase selling pressure, it is worth noting that a similar spike occurred in late February, just before SHIB rallied to $0.000045.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
