TL;DR

• SHIB’s TD Sequential Indicator flashes a buy signal on the weekly chart, suggesting a possible rebound.
• One analyst envisioned a potential for a 2,800% rally should BTC’s dominance head south.

Price Reversal in the Cards?

The second-largest meme coin in terms of total market capitalization performed quite well towards the end of 2024. However, it did not start the new year on the right foot, with its valuation gradually declining lately.

It tanked to a four-month low during the crypto market crash witnessed on February 3. In the following days, the bulls managed to recover some losses, but SHIB remains deep in the red on a two-week scale. 

Nonetheless, some key factors suggest that the meme coin could soon restart its bull run. According to the X user Ali Martinez, SHIB shows signs of a potential rebound as the TD Sequential Indicator “flashes a buy signal on the weekly chart.” 

The technical analysis tool identifies trend exhaustion points and possible price reversals in financial markets, including the crypto sector.

Next on the list is the Shiba Inu burn rate, which has exploded by almost 400% in the last 24 hours, resulting in almost 16.5 million tokens sent to a null address. While the USD equivalent of the stash might be insignificant, persistent efforts in the field could make SHIB more valuable via scarcity.

The total amount burned from the initial supply since adopting the program is over 410.7 trillion, meaning approximately 584.3 trillion tokens are currently in circulation. 

Third, we will focus on SHIB’s exchange netflow, which, according to CryptoQuant’s data, has been mostly negative in the last 30 days. The development suggests a possible shift from centralized trading venues toward private wallets and could be considered bullish since it reduces the immediate selling pressure. 

Optimistic Prediction

One of the people forecasting that SHIB may indeed see a rapid price increase in the short term is the X user CryptoELITES. The analyst outlined three sequential targets: $0.000085171, $0.000183312, and $0.000472905. The last one represents a whopping 2,800% increase from the current level. 

The market observer believes that SHIB’s uptrend could be triggered by the possible decrease in BTC’s dominance. 

“The technical outlook is positive. As BTC dominance decreases, SHIB will take the stage,” they assumed.

It is important to note that BTC’s dominance has been on the rise in the past few years – from less than 38% in November 2022 to over 60% as of writing these lines. 

The post Shiba Inu (SHIB) Rally Incoming? 3 Reasons Behind the Bullish Outlook appeared first on CryptoPotato.