Can Shiba Inu Price Skyrocket 60% As Short-term SHIB Holders Capitulate?

Shiba Inu (SHIB) is in a bearish trend that is in line with the broader crypto market. The downtrend can be attributed to Bitcoin’s recent crash, which plummeted 15% from its ATH of $107K to below $95K. But can Shiba Inu price rally 60% as short-term holders capitulate? 

Can Shiba Inu Price Rally As SHIB Holders Capitulate?

Shiba Inu price has dropped significantly, with its 30-day MVRV ratio sliding between -10% and -20%. This zone, often referred to as an “opportunity zone,” highlights where long-term holders typically accumulate as short-term traders capitulate. 

Such metrics suggest potential price rebounds as sentiment stabilizes. Analysts now question: can SHIB rally as its holders shift towards accumulation?

SHIB Technical Analysis Hints 60% Rally

A potential bullish setup for Shiba Inu price is unfolding, as the price action forms a classic “cup and handle” pattern. This technical indicator often signals a continuation of an uptrend and hints at a significant upside if confirmed. At the  of writing, the SHIB price is at $0.00002148, eye more gain despite bearish market.

The cup and handle pattern resembles a teacup with a rounded base (the “cup”) followed by a smaller consolidation (the “handle”). This setup reflects market participants’ gradual shift from bearish to bullish sentiment.

For SHIB, the “cup” formed over several months, showcasing a rounded accumulation phase, followed by the formation of a “handle” marked by minor pullbacks. The key level, known as the neckline, acts as resistance, currently near $0.00003287.

Technical analysis principles suggest the price target of a cup and handle pattern is calculated by measuring the height of the cup. This measurement is then added to the neckline level, predicting SHIB’s potential upside. For SHIB, a confirmed breakout above $0.00003287 could propel the price by approximately 60%, setting a target of $0.00005339.

However, a breakout above the neckline is crucial for validating the bullish pattern. Without it, the meme coin may fail to gain the necessary momentum.

The bullish outlook would be invalidated if the Shiba Inu price prediction drops below the handle’s support level, currently near $0.00002180. A move below this level could signal further declines, negating the cup and handle setup.

While bearish pressures persist, the Shiba Inu price could rally if accumulation strengthens and key resistance levels are breached. Investors should monitor sentiment shifts and technical confirmations.