Meme cryptocurrency Shiba Inu (SHIB) has recently maintained significant gains outperforming assets like Bitcoin (BTC). With the general market rally appearing to cool down, the SHIB’s subsequent trajectory is an area of focus if the token can manage the gains or will be weighed down by the overall sentiment.
Despite the impressive gains, the crypto community at tracking platform CoinMarketCap project that Shiba Inu will likely encounter bearishness in the coming days. Votes cast by 1,465 community members leveraging the price estimate feature indicate that SHIB will likely trade at an average price of $0.00001157 on the last day of this month, data obtained by Finbold on February 6 indicates.
Notably, the price estimate represents a drop of about 20% from SHIB’s price at the time of publishing. Conversely, based on the machine learning algorithm at PricePredictions, SHIB will likely trade at $0.000011 on February 14, 2023.
At the same time, in predicting SHIB’s price, the community accounts for a sixth-month average accuracy rate of about 77%. As of January 2023, the community registered an accuracy rate of about 90%.
SHIB’s potential to rally
Besides the community price predictions, technical analysis indicates that SHIB might be lining out for a possible price breakout. As reported by Finbold, crypto trading expert Ali Martinez suggested that the meme cryptocurrency is bracing for a bull pennant break out that positions the asset to target the level of $0.017.
Although SHIB’s price growth partly relies on the general market momentum, the asset receives backing from increased network activity. In particular, the upcoming layer 2 scaling solution dubbed Shibarium is projected to spur network and price growth.
Furthermore, Shiba Inu is witnessing increased activity from the burning front, with the initiative aimed at reducing SHIB’s supply and consequently impacting the price. In this line, SHIB developers announced that every transaction on the Shibarium network would result in a burn of the token. At the moment, the Shibarium update remains unknown.
Shiba Inu price analysis
By press time, Shiba Inu was trading at $0.00001459, representing gains of over 25% in the last seven days.
Elsewhere, SHIB daily gauges on TradingView are dominated by bullish sentiments, with a summary aligning with ‘buy’ sentiment at 15. Moving averages recommend the ‘strong buy’ sentiment gauging at 13 while oscillators remain ‘neutral’ at 8.
Overall, Shiba Inu will be looking for a possible catalyst from the network upgrades as a critical driver for a price rally considering the market rally is cooling down.
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