- Shiba Inu Coin price has moved sideways in the past two weeks.
- The token has some of the best contrarian technicals, including a falling wedge pattern.
- Shiba Inu token has some highly weak fundamentals, including falling futures open interest.
The Shiba Inu Coin price has stabilized in the past two weeks. It was trading at $0.00000594 on Monday, inside the range it has been in this period. This consolidation could be the calm before the storm as a falling wedge, bullish divergence, and Bollinger Bands squeeze continue.
Shiba Inu Coin Price Prediction as Bullish Patterns Emerge
The three-day chart shows that SHIB price has been in a strong downward trend over the past few months, falling from a high of $0.00003345 in December 2024 to the current $0.0000060.
A closer look shows that the token has formed a large falling wedge pattern, composed of two descending, converging trendlines. A falling wedge often leads to a strong rebound. It has already moved slightly above the upper side of the falling wedge pattern.
The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued rising. The RSI has jumped from 27 in February to 45 today. Also, the two lines of the Percentage Price Oscillator (PPO) have continued rising.
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At the same time, the three lines of the Bollinger Bands have narrowed substantially. In most cases, this price action often leads to a major move in either direction. In this case, the breakout may happen on the upper side.
If this happens, the Shiba Inu Coin price may soar to the next key resistance level at $0.000010, up about 70% from the current level.
SHIB Token’s Fundamentals are Weakening
While technicals suggest that a rebound is coming, its fundamentals are not all that strong. Data shows that the coin’s burn rate has dropped sharply in the past few weeks.
It incinerated 199 million tokens, worth just $1,287, over the last 30 days. That is a tiny amount for a crypto project worth over $3 billion. Shiba Inu has now burned 410.8 trillion tokens worth over $7 billion.
Meanwhile, Shibarium, its layer-2 network, is not doing well, with total value locked (TVL) falling by 21% over the last 30 days to just $598k. Its TVL has slumped from over $6 million in November 2024.
Shiba Inu’s futures open interest has continued to fall over the past few weeks, a sign that demand has been declining. It handled over $61 million today, down sharply from last year’s high of over $561 million.
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