Crypto analyst predicts breakthrough: Shiba Inu ready for explosive growth

Now that the crypto market is showing signs of recovery, memecoins like Shiba Inu (SHIB) also appear to be making a comeback. In the past 24 hours, the token rose by almost 3%. According to crypto analyst SHIB Knight, SHIB has broken a downward trend line that has lasted for almost a year. This could pave the way for further price increases.

Historical price movements of SHIB

In December last year, SHIB peaked at $0.000033, followed by an even higher value of $0.000044 in March. However, the token then suffered serious setbacks and the price even fell below $0.000019. With SHIB recently breaking a downtrend line, sentiment seems to be returning and the current value is around $0.000022.

Although this is a positive signal, a new all-time high remains out of reach for the time being. To match 2021’s record value of $0.000086, SHIB would need to rise nearly 300% more.

On-chain data points to bullish sentiment

Data from blockchain analytics platform IntoTheBlock supports the positive outlook for SHIB. It appears that holders of the memecoin are becoming increasingly active. Over the past seven days, net inflows into major wallets increased by 1.93%. On a monthly basis, there has even been an increase of no less than 765.83%. This indicates that large investors, so-called whales, are also anticipating a further price increase.

Warning: High concentration and volatility

Still, there are risks associated with SHIB’s recent rise. On-chain data shows that five major holders own 57% of all tokens, amounting to 565 trillion SHIB worth $7.3 billion. This concentration entails a risk: profit-taking by these parties could end the rally abruptly and cause high volatility. Crypto analysts therefore emphasize that investors should be careful.

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