Shiba Inu gains attention as analysts predict strong rally

Shiba Inu (CRYPTO:SHIB) has captured market attention with recent price movements and ongoing ecosystem advancements.  

The token reached a seven-month high in mid-November, with its market capitalisation exceeding $17 billion before experiencing a slight pullback.  

According to analyst Ali Martinez, SHIB’s price could see a significant increase after surpassing the $0.000025 resistance level.

“The last time we saw a similar spike, Shiba Inu surged 62% in price,” he noted.

Martinez also highlighted the withdrawal of 1.7 trillion SHIB tokens from exchanges within 24 hours last week.  

Based on data from CryptoQuant, SHIB’s exchange reserves have declined to a three-year low, which could reduce selling pressure as more holders shift to self-custody.  

Shibarium, Shiba Inu’s layer-2 scaling solution, continues to progress, surpassing 8 million processed blocks and 400 million transactions.  

Designed to enhance transaction speed and reduce fees, Shibarium also includes a burning mechanism aimed at reducing SHIB’s circulating supply, which could impact its valuation over time.  

Another market analyst, Crypto King, suggested that SHIB’s price movements might follow patterns similar to Dogecoin (CRYPTO:DOGE), which recently saw a significant price increase.  

While comparisons to DOGE offer a potential outlook, SHIB’s performance will depend on various factors, including market sentiment and continued ecosystem development.  

The combination of reduced exchange reserves, advancements in Shibarium, and optimistic forecasts has contributed to a sense of anticipation around SHIB’s price trajectory.  

However, as the cryptocurrency market remains volatile, traders and investors are encouraged to closely monitor key levels and developments within the ecosystem.  

At the time of reporting, the Shiba Inu (SHIB) price was $0.00002514.