Markets
How will SHIB price react?
Shiba Inu price peaked at $0.000026 on May 16, but with the Gamestop rally spurring bullish retail activity in the memecoin market, can SHIB maintain the bullish momentum?
SHIB Prices Rise Amid Memecoin Mania
The Gamestop (GME) saga of 2021 saw large institutional investors record billions in losses amid a coordinated frenzy of dishonest retail demand. Lingering nostalgia for this historic event has spread across the crypto-memecoin market this week.
Shiba Inu (SHIB) price now also appears poised to join the memecoin mania with a potential parabolic breakout.
At press time on May 16, SHIB was trading at a high price of $0.000025, having seen a 20.77% rise over the past 3 trading days. The upward SHIB price trend above aligns with the growing bullish sentiment surrounding the global memecoin market.
Since the Gamestop fanfare erupted around May 12, the memecoin market has seen significant capital inflows. The likes of Dogecoin (DOGE) and Dogwifhat (Wireless) posted double-digit gains, while PEPE rallied 90% for the month, breaking new all-time highs on May 14.
SHIB Trading Volume Skyrockets $155 Million as Bulls Eye Further Upside
Further confirming Shiba In’s bullish outlook, on-chain data shows that investors quickly accumulated additional capital in SHIB markets this week.
The Santiment trading volume chart below tracks the dollar value of daily transactions involving SHIB on a given day.
– Advertisement –
Shiba Inu investors traded $18.9 million worth of SHIB at the start of the week of May 12. But according to the chart above, that figure has now jumped to $174.5 million worth of trades executed on May 16.
This $155 million increase in trading volume represents a nearly 1,000% increase in SHIB spot market activity between May 12 and 16, far outpacing the 20.77% price growth as of during the same period.
When the increase in trading volume exceeds price growth during a rally, it signals a strong trend for a prolonged upward move. First, increased market liquidity allows profit-takers to exit without hampering the recovery, while also highlighting increased capital inflows.
Additionally, SHIB’s gains in May 2024 currently still pale in comparison to those of PEPE and DOGE. Indeed, new strategic entrants could consider that the Shiba Inu price is undervalued and decide to accumulate additional positions in anticipation of a further increase in the days to come.
SHIB Price Prediction: $0.000030 Target Now Targeted
Shiba Inu price currently sits above the $0.0000025 support per thread at the time of writing on May 16. However, with the $155 million growth in trading volume and the bullish sentiment surrounding the global memecoin market, SHIB price is likely to advance towards $0.000030 in the coming days.
As for near-term resistance hurdles, the Upper Bound Bollinger Band indicator indicates that the bulls may struggle to surpass the $0.000026 level.
But if this resistance collapses, it will likely trigger a quick break above $0.000030, as expected.
And conversely, in the event of a market slowdown, the bulls could mount an initial buying wall of support at the $0.000022 level.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
-Advertisement-