TL;DR

Analysts point to strong technical patterns as signs that a major SHIB rally could be brewing. Despite the optimism, CryptoQuant data shows positive exchange netflows, meaning investors are moving SHIB to centralized platforms typically a signal of rising short-term selling pressure.

SHIB Pump Incoming?

The price of the second-biggest meme coin has surged by 37% over the past month, but it remains far below the all-time high registered in 2021 and the peaks last year. According to some analysts, though, the real bull run has yet to start.

X user Javon Marks noted the formation of a large Inverse Head Shoulders pattern on Shiba Inus price chart, which resembles notable strength. The market observer assumed this could trigger a rally of over 400% to the technical target of $0.000081. 

The analyst, using the pseudonym Friedrich, believes SHIB is poised to take center stage due to a substantial price increase. Despite their optimistic forecast, they cautioned investors to tread carefully when using leverage.

$SHIB is about to blast! ✍️

With $ETH ripping, $SHIB will go for a retest of ATHs for sure.

Bidding in spot!

About leverage, manage your risks accordingly.@ShibainuCoin #meme pic.twitter.com/K101EUZ3WK

The X user CW also chipped in, envisioning a big upside for the meme coin if its price breaks the barrier of $0.000017. Currently, SHIB trades at around $0.00001474, meaning it has to jump by 15% to reach that level. 

What are the Indicators Signaling?

Some important factors, such as the Shiba Inu burning mechanism, support the bullish sentiment among the aforementioned analysts.

Over the last seven days, the burn rate has increased by almost 200%, with the team and community sending roughly 135 million tokens to a null address, which nobody can access. While the USD equivalent of the stash is insignificant, continuous efforts in that field will make the asset scarcer and potentially more valuable (assuming demand doesnt head south). 

The interest in Shiba Inu has also picked up. Google searches involving the meme coin recently reached a five-month high, suggesting a growing appetite from retail investors.

SHIB Google Searches, Source: Google Trends However, not all indicators are bullish. CryptoQuants data shows that SHIBs exchange netflows have been positive over the last week, signaling rising short-term selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant