Potential Price Surge of Shiba Inu Token Suggested by Bullish Divergence, Anticipating a 155% Increase
In a recent analysis shared on social media platform X, crypto analyst Javon Marks has identified a bullish divergence in the Shiba Inu (SHIB) price chart. This bullish divergence could indicate weakening selling pressure, potentially leading to a significant price increase for the popular digital asset.
Marks first flagged this setup in August, suggesting that the current move may mark the start of a larger reversal for SHIB. He reiterated his earlier analysis from August 6th, where he detailed a bullish divergence pattern in Shiba Inu. This pattern often signals weakening selling pressure, which could be a positive sign for SHIB investors.
The bullish divergence observed between the SHIB price and a key momentum indicator, the Moving Average Convergence Divergence (MACD), could be particularly noteworthy. The MACD is a momentum indicator used in technical analysis to gauge the strength and direction of a market trend. It is calculated using two different exponential moving averages.
The MACD indicator is displayed with a signal line and a histogram. The MACD histogram shows the distance between the two lines, and when the MACD line prints higher lows while the price prints lower lows, it signals a bullish divergence. This is exactly what has been happening with SHIB as of late.
Interestingly, Marks included a hand-drawn arrow projecting a potential future price trajectory towards the $0.000032 price zone. If the current technical patterns hold, Shiba Inu could experience a potential 155% price surge, reaching this level.
This prediction is not without precedent. In his August analysis, Marks noted that prices may be preparing for a resulting run, potentially leading to a 156% increase in the price of Shiba Inu. Crypto-analyst Laura Shin also analyzed the Shiba Inu price curve and forecasted a possible price increase of over 155%, with the prediction timeframe set for the end of 2023 and early 2024.
It's important to note that while these technical analyses provide valuable insights, they do not guarantee future performance. The prolonged consolidation of Shiba Inu and the broader digital asset market has left traders looking for clues about the asset's next major move. However, the bullish divergence pattern observed in the Shiba Inu price chart was first confirmed earlier in the year, offering some optimism for SHIB investors.
In conclusion, the bullish divergence in the Shiba Inu price chart, as identified by Javon Marks and other analysts, suggests weakening selling pressure and could potentially lead to a significant price increase. While this is not a guarantee of future performance, it does provide a promising outlook for SHIB investors. As always, it's essential to conduct thorough research and consider the broader market conditions before making any investment decisions.
