Shiba Inu (SHIB) could be gearing up for an explosive 493% rally to the $0.00004 territory if it can register a confident weekly close above the middle band of the Bollinger Bands indicator.
SHIB registered five consecutive weekly green candles from mid October to early November amid the market-wide growth. However, following a surge to $0.00000965, Shiba Inu has underperformed over the past two weeks, with the bears looking to trigger a retracement of the previous gains.
SHIB has collapsed by more than 12% since Nov. 13. This drop comes amid the dull condition within the broader market. However, as Bitcoin reclaims the $38,000 territory, Shiba Inu has failed to capitalize on this rally for a more substantial growth. This is due to unique selling pressure by profit takers.
Despite the selling pressure, SHIB is currently trading at a pivotal position that suggests growing bullish momentum. The asset is now looking to register a confident weekly close above the middle band of the Bollinger Bands indicator – a move that could signal an imminent explosive rally.
Shiba Inu Position Relative to the Bollinger Bands
The middle band of the Bollinger Bands indicator is a simple moving average (SMA) that represents the prevailing market trend. Prices above the middle band suggest an uptrend, while prices below indicate a downtrend. Crosses above or below the band can signal potential trend changes.
While Shiba Inu has recorded a few weekly closes above the middle band, these closes have not come with complete confidence. SHIB has only made these bullish weekly closes twice over the past two years. Each of these closes have preceded an impressive rally.
The first time this close occurred was in early October 2021 when SHIB closed the week at $0.00002613 while the middle Bollinger band stood at $0.00000851. Shortly after recording this close, SHIB rallied 939% from the start of October to the ATH of $0.00008845 at the end of October 2021.
Following the all-time high, Shiba Inu continued to decline until it dropped below the middle band in January 2022. The asset remained underneath the band until January 2023 when it recorded a second confident close. Following this second close, SHIB surged 47% to this year’s peak of $0.00001575.
An Imminent Repetition
Though SHIB recently registered a similar bullish close above the middle band, this was not a confident move. The asset is now looking to replicate a confident close similar to the January move. Should this occur, SHIB could be looking to register a 493% increase from its current position.
This figure is an average of the two surges recorded in October 2021 and February this year. Shiba Inu currently trades for $0.00000833. A 493% increase would result in a $0.0000410 price. The last time SHIB saw the $0.00004 price territory was in November 2021.