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SHIB is gearing up for a massive bullish breakout as analysts predict a major upside for the altcoin, citing multiple bullish patterns.
In a Nov. 21 X post, Analyst Ali Martinez noted that Shiba Inu has formed a bull flag pattern on the 1-day chart. The pattern is considered highly bullish in technical analysis, and a break above it typically leads to major gains in the short term.
Martinez predicts that SHIB could climb to $0.000037—54% above its current price—if it successfully breaks and holds above the $0.000025 resistance level and sustains that position.
An even more optimistic outlook came from independent analyst Javon Marks, who noted that SHIB has already broken out of a multi-month falling wedge pattern, a strong bullish indicator. Marks predicted a potential rally to $0.000081, representing an increase of over 200% from current price levels.
Shiba Inu (SHIB), the second-biggest meme coin, was trading at $0.000026 on Friday, Nov. 22, up 2.2% over the last day, with its market cap seated at over $14.5 billion. It is up over 92% from its lowest level in August.
Multiple catalysts at play
SHIB’s rebound may be attributed to bullish catalysts, including a significant increase in token burns and heightened activity on the Shibarium network over the past months.
On Thursday, Shiburn data revealed a 2,200% spike in Shiba Inu token burns, with 14.58 million tokens removed from circulation. This brought the total burned tokens to over 410.7 trillion, reducing the circulating supply to 583.8 trillion.
Another driver for Shiba Inu’s price momentum is the surge in transactions on Shibarium, its layer-2 blockchain. Over the past few months, Shibarium has processed more than 541 million transactions. This network growth is bullish for SHIB, as transaction fees collected in BONE tokens are partially converted into SHIB and burned, further lowering supply.
SHIB whale accumulation has also seen an uptick lately. According to data from IntoTheBlock, large holder netflow surged by 256% on Thursday, as whales accumulated 393.48 billion SHIB tokens worth over $9.8 million, compared to the $6 million sell-off recorded the previous day.
Further, SHIB’s rally could also benefit from Bitcoin’s ongoing surge, which has already ignited bullish sentiment across the crypto market. The flagship crypto’s recent run past $99,000 has driven a 5.3% rise in the total market capitalization of altcoins.
SHIB isn’t overbought
On the 1-day SHIB/USDT price chart, SHIB was trading above the 50-day and 200-day Moving Average Exponentials, suggesting the bullish trend remains strong and will continue in the short term. The Relative Strength Index at 59 adds weight to the fact that there is room for more gains as the meme coin is yet to hit overbought levels.
SHIB was also moving above the middle Bollinger Band, suggesting an increase in buying pressure which is a positive sign for the recent rally.
Given these bullish indicators, it’s likely that SHIB will continue rallying, with the next potential target being the year-to-date high of $0.000036.