Analyst eyes 540% surge for Shiba Inu price Despite Low On-Chain activity – Can it happen?

Shiba Inu price remains in the spotlight as speculation builds over a potential breakout from a key chart structure. At the time of writing, SHIB price trades at $0.00001232, reflecting a slight 0.52% dip over the past 24 hours. Although the slight loss, technical indicators reveal that a significant setup is emerging which may determine the next move of the token.

Shiba Inu Price Action – Can This Setup Deliver a 540% Rally?

The Shiba Inu price chart has been forming an inverse head and shoulders pattern, a bullish structure often linked to major reversals. A crypto markets analyst, on X platform,  highlighted this setup, projecting that a confirmed breakout could push SHIB price toward $0.000081, signaling a possible 540% upside. 

The left shoulder and head are already formed and the right shoulder is forming around the support zone of $0.000018 to 0.000020. This region has been a traditional area of accumulation and thus is a key area that buyers must defend. 

A break of the neckline would indicate a confirmation of the pattern and may lead to the new all-time highs positioning itself as one of the top meme coins.

Beyond the headline target, the Shiba Inu price chart reveals tightening consolidation with reduced volatility, often a precursor to sharp moves. The current resistance is close to the neckline and to break it, it would need a lot of volume to support the bullish argument. 

If SHIB price can sustain above this level, upside acceleration could occur rapidly as traders pile in. But, a failure to defend key supports can invalidate the setup, potentially dragging the token back to former lows. 

This two-fold perspective highlights the precarious nature of hope and fear. Ultimately, the structure still ties into the long-term Shiba Inu price prediction narrative, which positions SHIB for long-term relevance if the pattern plays out.

Shibarium Activity Cools as Usage Hits 2-Month Low

Shibarium’s activity has weakened sharply, with daily transactions dropping to 624,135, the lowest in two months after holding near four million. This decline highlights reduced engagement across the network during the market downturn and raises concerns about sustaining Shiba Inu price gains. 

As a minor governance change, Doggy DAO has recently implemented flexible voting mechanisms such as quadratic voting to reduce the influence of whales. Although this is good, it does not do much to counteract lower usage. Without stronger participation, SHIB price risks relying on speculation rather than adoption. 

Previous downturns in activity have been followed by rapid recoveries but the current downturn seems to be longer-lasting. Unless volumes pick up soon, investor confidence may remain weak.

Conclusively, Shiba Inu price shows a promising long-term outlook as the inverse head and shoulders pattern builds. SHIB price could rally significantly if the breakout confirms, aligning with bullish projections. However, weak Shibarium activity signals that short-term caution is necessary until on-chain usage rebounds. For now, the charts favor optimism, but patience remains key for sustainable gains.