Shiba Inu (SHIB) Price Skyrockets By 28%: 4 Key Reasons

Shiba Inu (SHIB) Price Skyrockets By 28%: 4 Key Reasons

Time Stamp: February 29, 2024 11:00 AM
Source Node: 2499986

The price of Shiba Inu (SHIB) has surged by 28% in the last 24 hours and 45% in the last seven days. Today’s surge can be attributed to a confluence of factors, including a rekindling meme coin frenzy, actions by crypto whales, a favorable chart setup, and significant partnerships and ecosystem expansions. Here’s an in-depth look at these pivotal elements fueling SHIB’s impressive rally.

#1 Meme Coin Frenzy

In the wake of yesterday’s significant Bitcoin surge, there’s seemingly a noticeable resurgence of interest in higher-risk investments within the crypto sphere. An examination of the most recent 24-hour performance data reveals that the top three performers among the top 100 cryptocurrencies, measured by market capitalization, are all meme coins.

Leading the pack is BONK with an impressive 52% gain, followed by Dogecoin with a 33% increase, and SHIB rounding out the trio with a 25% rise. This trend suggests that we may be on the cusp of another meme coin rally.

Meme coin frenzy
Top-3 gainers in the last 24 hours | Source: Coinmarketcap

Crypto analyst Rekt Capital has contributed to this narrative by sharing a chart depicting the total market capitalization of altcoins, excluding the top 10. His analysis, encapsulated by the remark, “ALTS Altcoin Market Cap is on the right track,” highlights a breakthrough past a significant resistance level. The market is now poised to target a $315.57 billion valuation, currently standing at approximately $272 billion.

#2 Whale Movements

A notable development that has captured the crypto community’s attention is that a whale has made significant moves within the meme coin market, particularly with Shiba Inu (SHIB) and Pepe (PEPE). These transactions came to light through the analysis of Lookonchain, which detailed the whale’s manoeuvres on social media.

According to Lookonchain’s insights, this unidentified investor transferred an eye-catching 1.97 trillion PEPE tokens, valued at around $6.07 million, to Binance. This strategic shift yielded a profit of $3.49 million, showcasing the investor’s adept timing and market navigation skills. Subsequently, capitalizing on this lucrative outcome, the whale pivoted towards Shiba Inu, withdrawing 75.9 billion SHIB tokens—equivalent to $893,000—from Binance mere hours later.

#3 Chart Setup

Another contributing factor might have been a bullish pattern for SHIB which emerged three weeks ago, foreshadowing a potential upturn in its market trajectory. Since mid-December 2023, SHIB’s price movement has been characterized by a descending parallel channel.

A pivotal moment came on February 7, when SHIB broke free from this channel, surpassing the 200-day Exponential Moving Average (EMA) and subsequently breaching the 20- and 50-week EMAs. This development has set the stage for the current rally.

This breakout is of particular interest because it reflects a similar pattern observed in October 2023, when SHIB experienced a breakout from a descending channel, leading to an almost 80% increase in its value over the span of 59 days.

Should the SHIB market replicate this historical performance, the target might be set at the 0.786 Fibonacci retracement level, priced at $0.00001525. Achieving this would represent a significant rally of approximately 73%.

Shiba Inu price
SHIB price, 1-week chart | Source: SHIBUSD on TradingView.com

#4 Partnerships and Expanding Ecosystem

Yesterday, the SHIB team announced a partnership with Zama, a leader in Fully Homomorphic Encryption (FHE) technology. This collaboration aims to enhance the privacy and security features of the SHIB ecosystem.

Zama’s expertise in cryptography and FHE will enable SHIB to process data in its encrypted state, ensuring user privacy and data protection. This strategic alliance not only fortifies the ecosystem’s security but also showcases SHIB’s commitment to innovation and user trust.

Shiba Inu lead developer Shytoshi Kusama remarked:

Our latest partnership is a BIG one. Pay close attention to why Encryption and Privacy are important to the Shib Ecosystem and state!

SHIB has recently been very active in entering into new partnerships. Most recently, K9 Finance was accepted into the SHIB army.

Overall, the combination of resurging interest in meme coins, strategic investments by crypto whales, a favorable chart setup, and impactful partnerships have probably collectively fueled SHIB’s price surge.

Featured image created with DALLE, chart from TradingView.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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