In an analysis, Moataz “Eljaboom” Elsayed, a crypto analyst and Forbes 40 under 40 nominee, has forecasted a significant surge in the value of Shiba Inu (SHIB). According to Elsayed, the meme-based cryptocurrency is poised for a potential increase that could see its value reach $0.00024, marking an unprecedented 1,105% gain from its current levels.

Shiba Inu Price Set To Skyrocket 1,100%?

In a review of SHIB’s price activity on the weekly chart (SHIB/USDT), Elsayed pinpointed a repeating pattern that initially occurred during the second quarter of 2021, shortly after Binance, a major crypto exchange, began trading SHIB. According to him, Shiba Inu’s historical data is exhibiting a pattern that, if repeated, will propel its price to new heights. He noted that the cryptocurrency experienced a notable rise to $0.00005 during the week of May 10, 2021, following its listing on Binance.

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Elsayed’s analysis draws attention to a critical period in SHIB’s market behavior. After reaching a high of $0.00005, the token underwent a correction, settling below a pivotal support range of $0.00001784 to $0.00001995 for nearly 120 days. However, a subsequent breakout occurred in October 2021 as the broader bull market gained momentum, catapulting SHIB by 343.64% from its support level to a peak of $0.00008854.

History Is Repeating Itself #SHIB pic.twitter.com/zeeXVWhpKZ

— Elja (@Eljaboom) June 8, 2024

The subsequent correction and entry into a bear market, exacerbated by the collapse of the Terra ecosystem in May 2022, saw SHIB prices fall below key support levels. It remained subdued under these levels for 658 days, struggling to surpass the $0.00001 mark. Yet, a resurgence in March of this year saw SHIB soar by more than 370% to a yearly high of $0.00004567.

Building on this data, Elsayed anticipates a similar, if not more pronounced, trajectory for SHIB in the near future. He estimates that this next breakout could propel SHIB’s price to $0.0002404, effectively increasing its market capitalization to $141.6 billion. Given the cyclical nature of the crypto market, such could be on the cards, according to the crypto analyst.

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In the daily SHIB/USD chart, Shiba Inu’s price is currently in a consolidation phase, following a significant rally to this year’s high in early March. Despite breaking out of a symmetrical triangle pattern in mid-May, SHIB failed to sustain a close above the 0.382 Fibonacci retracement level of $0.00002883.

Subsequent to this rejection, the price fell below the 0.236 Fibonacci level and is now struggling to establish support at the 100-day Exponential Moving Average (EMA). Maintaining a daily close above $0.00002326 is critical to prevent a potential further decline towards the 200-day EMA at $0.00001977.

Featured image created with DALL·E, chart from TradingView.com