SHIB Price Continues to Experience Price Pressure as Investors Assess Market Conditions

Shiba Inu (SHIB) price continues to experience price pressure as investors assess market conditions. The coin has erased recent gains, revisiting its March 14 low.

Shiba Inu (SHIB) price has experienced some price pressure as investors assess market conditions. The coin has erased recent gains, returning to the lows last seen on March 14.

However, on-chain data suggests that investor interest in SHIB remains high, with the total number of SHIB holders now surpassing 1.5 million. This growth, combined with an increasing burn rate, could have implications for future price movements.

SHIB Holders Surpass 1.5 Million Amid Scarcity

Data from Etherscan confirms that SHIB adoption is surging despite recent price setbacks. The number of unique SHIB holders has now exceeded 1.5 million, highlighting its status as one of the most widely held meme coins. This increase in adoption showcases the sustained confidence of both retail and institutional investors in the coin.

Moreover, SHIB’s burn rate has skyrocketed by 750%, with 17.1 million tokens burned in a single day. Two significant burns last week alone saw 1 billion SHIB tokens removed from circulation, further reducing the available supply. Token burns are typically driven by the SHIB community and aim to create scarcity, which could, in turn, drive price appreciation as the remaining supply becomes more limited.

Technical Indicators Suggest a Potential Breakout

Shiba Inu price action presents interesting technical perspectives, which could indicate a potential rebound. The coin has formed a quadruple bottom pattern, a technical formation that is often observed as a strong reversal signal.

This formation, which has been in play since July 2023, suggests that sellers are struggling to maintain momentum and push SHIB below a critical support level. A triple bottom formation is usually seen as a bullish signal, but a quadruple bottom pattern further lessens the chances of a downward breakout.

Furthermore, SHIB price previously broke out of a falling wedge pattern in mid-March, leading to a rally that stalled at $0.01566. The current retracement could be viewed as a classic "break-and-retest" formation, where the price returns to test the upper boundary of the wedge before resuming its upward move.

If this scenario plays out, SHIB could encounter resistance at the Fibonacci level, around $0.00001471, and then at the 127.2% Fib, which is at $0.00001916. A break above the wedge formation could propel SHIB towards these resistance levels.

Analyst Identifies Symmetrical Triangle Pattern for Potential SHIB Gains

CryptoELITES, a market analyst known for his technical insights, took to Twitter to highlight a symmetrical triangle pattern forming in the SHIB chart. The analysis positioned SHIB at $0.0023, nearly touching the lower trendline of the triangle, creating a "strong buy zone."

According to the analyst's observations, a breakout from the triangle pattern could propel SHIB towards $0.000238, presenting an impressive 17x potential gain from the current price levels. However, a closer examination of the triangle's height suggests a more conservative target of $0.000043, which is reached when the triangle's height is fully applied.

Despite this adjustment, the overall outlook remains bullish, considering the weekly 12.61% price increase of SHIB and the sustained demand for Shibarium, which is evident in the high on-chain usage.

Realistic Targets and Market Sentiment

Despite optimistic predictions, a surge to $1 within 30 days appears improbable. At the current price of $0.0002857, to reach $1 would require a market cap of nearly $589 trillion, far exceeding the entire crypto market’s valuation.

Other conservative predictions, such as those from Changelly, suggest a rise to $0.0000326 by the year 2025, presenting a potential 41% gain from the current price.

Shibarium’s adoption and the coin’s burning are the main keys to a long-term uptrend for the coin.

Thus, if SHIB price continues to have high on-chain usage and surges past key technical levels, its gain can be moderate. On the other hand, under rather favorable conditions, the potential increase is 2x – 3x not far off.

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.