Shiba Inu (SHIB) is drawing attention as analysts suggest a potential 260% price rally to $0.000081 in the coming months.
Following a decline of over 37% from its December highs, the meme-inspired token has struggled to reclaim previous levels. However, whale movements and bullish chart patterns indicate that Shiba Inu may be on the brink of a major recovery.
Whale withdraws $4.63M in Shiba Inu from Binance
Shiba Inu recently has been the movement of $4.63 million worth of SHIB by a whale from Binance. This wallet, dormant for five months, withdrew 220 billion SHIB tokens, sparking speculation about an impending price movement.
The transaction occurred as Shiba Inu fought to maintain its position above the $0.000025 price mark, which had become a struggle during the holiday period.
Resistance levels holding SHIB back
Data from IntoTheBlock reveals two major resistance levels currently preventing Shiba Inu from breaking into the $0.00003 range. The first resistance zone, from $0.000023 to $0.000024, includes 42,310 addresses holding 60.44 trillion SHIB tokens.
The second, larger resistance zone lies between $0.000024 and $0.000030, with 208,010 addresses holding 70.35 trillion SHIB. These sell walls have consistently thwarted SHIB’s recovery attempts, leading to pullbacks and significant declines.
Bullish chart signals and analyst predictions
Despite these resistance levels, technical analyst Javon Marks has pointed out bullish signs on Shiba Inu’s price chart. Marks identifies a breakout from a long-term resistance trendline, followed by a retest of the same trendline as support, which could signal the start of a bullish trend.
Marks predicts that Shiba Inu could reach $0.000081 in the short term, representing a 260% gain from current price levels. He also highlights a phenomenon known as hidden bullish divergence, where the price forms higher lows while momentum indicators form lower lows.
Technical indicators show growing buying pressure
Shiba Inu’s technical indicators, such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence), provide additional insights into its potential price movement.
This means that unless something drastic changes, the RSI of SHIB is at 65.52 from January 2, 2025, which indicates that it is in the overbought section. Readings above 70 levels augur for an overbought stance, suggesting that a retracement could be incoming while the token is on an upward trend.
However, the MACD is positive, and the MACD line is placed at 0.000000019 when compared to the signal line at 0.000000010. The positive histogram for MACD rises day by day, also indicating the buy-side pressure.
