Shiba Inu is currently repeating a pattern it recorded during the 2021 bull run, which resulted in an impressive 1,164% rally in just one month.
Crypto market analyst and educationist Rafaela Ligo called attention to this pattern in a recent post on X, quoting a previous analysis she made on SHIB’s price movements when it demonstrated a similar trend in September 2021.
1,164% Upsurge
Notably, during that time, Rafaela confirmed that Shiba Inu faced a strong resistance level at the $0.0000095 price territory. Data from an accompanying chart indicated that Shiba Inu retested the resistance level seven times from May 2021 to September 2021.
Following the seventh retest on Sept. 17, 2021, Shiba Inu saw a price drop that saw it collapse to the $0.000007 level. Amid this drop in price, Rafaela identified a bullish divergence formed by Shiba Inu with respect to its relative strength index (RSI).
For context, a bullish divergence typically occurs when a cryptocurrency records a drop in price, but its technical indicator witnesses an uptrend. Despite Shiba Inu collapsing to $0.000007, its RSI continued to record new highs, indicating growing strength.
Rafaela further confirmed that SHIB’s action was relatively stable in the five-day and weekly timeframe, suggesting that it could be on the verge of breaking the $0.0000095 resistance.
Interestingly, Shiba Inu broke this resistance in October 2021, soaring from a low of $0.000007 on Sept. 30 to its ATH of $0.00008845 on Oct. 28, 2021. This rally marked a 1,164% increase in Shiba Inu’s price in less than a month, shortly after it followed this trend and breached the potent resistance.
Shiba Inu October 2021 Performance
Shiba Inu Repeats 2021 Pattern
Now, Rafaela believes SHIB is taking a similar path in this bull phase. In her latest analysis, she leveraged a weekly chart to point out that while Shiba Inu has continued to record price declines, its volume has seen remarkable surges.
$SHIB
Remember my chart below in 2021 just before it exploded?
Well…it should do again this cycle pic.twitter.com/GNZGeioRdw— ⭐RᗩᖴᗩEᒪᗩ 𝗥𝗜𝗚𝗢 ⭐ (@RAFAELA_RIGO_) April 4, 2024
Notably, since late February, Shiba Inu’s cumulative trading volume on Binance has exceeded 907 trillion tokens, marking a rapid growth in interest. While this trend does not particularly constitute a bearish divergence, it could signal increased accumulation or selling pressure.
Rafaela’s chart indicates that SHIB has been facing resistance at the $0.000032 territory, similar to what it observed in 2021. The market analyst expects Shiba Inu to eventually breach the resistance, projecting a 2,015% upsurge from the $0.0000066 level to $0.0001402.
Meanwhile, Shiba Inu currently trades for $0.00002682, down 3.4% today. Despite its low price, industry commentators are fully convinced the SHIB can reclaim the $0.0001 level. Lead developer Shytoshi Kusama asserted last month that a prediction of $0.00012 price for SHIB is an “underestimate.”
