Analyst Says Shiba Inu Ready to Surge as SHIB Breaks Free from Downtrend

Shiba Inu (SHIB) has returned to its winning ways after trailing the bullish sentiment in the broader crypto ecosystem in hopes of retesting its previous resistance zone at $0.00001.

The change in trend in Shiba Inu’s price can be seen from the 3.29% surge in the past 24 hours, bringing the value to $0.000009333. Market cap has jumped by the same rate to $5,501,534,087 while the trading volume has shown the biggest growth rate, pegged at 48.74% to $127,411,112. 

The current growth validates the high volatility inherent in Shiba Inu. The current price action has helped it extend its trailing 7-day growth to 9.11%.

SHIB on a Path to $0.00001

According to market analyst and Shiba Inu community insider SHIB KNIGHT, the token is breaking the downtrend on the 2H chart. By sharing a simple SHIB/USDT chart, SHIB KNIGHT revealed the reversing trend in the token after a sustained drawdown period.

$SHIB is breaking downtrend at 2H Chart pic.twitter.com/XN3R2EjJEm

— $SHIB KNIGHT (@army_shiba) January 29, 2024

SHIB KNIGHT is one of the key proponents of Shiba Inu and while the breakout in Shiba Inu is a reflection of the broader market trend, the Shib Army can ride this breakout to erase one zero in the price of the token. With sustained price growth, this feat is achievable as the month of January looks to wrap up.

Prediction platforms have maintained a bullish outlook on Shiba Inu, and a positive January close is a validation that might also lead to a better-than-expected performance in February.

According to another analysis by KNIGHT, SHIB has the potential to experience sudden and significant price increases at any moment, commonly referred to as “pumping.” This indicates that investors who are interested in trading SHIB should keep a close eye on market trends and be prepared to act quickly in response to any changes.

$SHIB can pump at any time ? pic.twitter.com/Z8mCQBKqpo

— $SHIB KNIGHT (@army_shiba) January 30, 2024

Resolving the Current SHIB Supply Dilemma

Promising as Shiba Inu’s future is, there are still very obvious bottlenecks that need to be addressed. The top on this list is the excessive supply that must be reduced to a very large extent.

While there has been a steady deflation in this supply through a burn campaign, the developers of Shibarium are rolling out a burn portal that will automate the process and expedite the rate of SHIB incineration. The ultimate goal here is to reduce supply and possibly boost the valuation of the tokens in the long term.

Shibarium is also calling on its core developers to double down on building Decentralized Applications (DApps) that can drive usage and, simultaneously, the price of SHIB.