Shiba Inu price has remained in a deep bear market this year as it crashed by over 55% from its highest level in November. SHIB token was trading at $0.00001455 on Monday morning, and is hovering near its lowest level since September last year. So, will the SHIB token rebound in March?
Shiba Inu price forecast
The daily chart shows that the SHIB price peaked at $0.0000332 in November last year and embarked on a strong bearish trend, bottoming at $0.000012 in February.
It has remained below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears are control.
Most importantly, the token is loitering at a crucial support since this level coincided with the lowest levels in July, August, and September last year. It was also the lowest level in February last year.
The coin has formed a falling wedge chart pattern, pointing to a potential rebound later this year. A wedge is a chart pattern made up of two falling and converging trendlines. A bullish breakout happens when the price is about to converge.
SHIB coin has also formed a triple-bottom chart pattern at $0.00001260. This bottom is a sign that the token failed to crash below that level several times this year. It often leads to a strong bullish breakout, in this case, to the neckline at $0.00003326.
Shiba Inu price has also formed a bullish divergence pattern, which happens when an oscillator is rising as the coin declines. In this case, the Percentage Price Oscillator (PPO), a unique type of the MACD indicator, has started to rise slightly. The Relative Strength Index (RSI) has also tilted upward.
Therefore, the path of the least resistance for the coin is bullish, with the next level to watch being at $0.00003326, the highest level in Decemberof last year. A drop below the support at $0.00001 will invalidate the bullish view.
SHIB price chart | Source: TradingView
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Potential catalysts for SHIB price
There are several potential catalysts for the SHIB price. First, from a macro level, the coin will likely benefit from the potential crypto rebound during the month. Analysts are optimistic that Bitcoin and other altcoins will recover in March after being in the red in the last two months.
Second, Donald Trump is planning to have a crypto summit at the White House later this week, a move that may lead to a crypto surge. Popular coins like Cardano and Ripple (XRP) have also surged ahead of the summit.
Third, Shiba Inu is one of the most deflationary meme coins in the crypto industry because of the token burn. The network burns millions of SHIB tokens each day. It burned over 15.5 million in the last 24 hours, bringing the total burnt from initial supply to 410 trillion.
A token burn occurs when a cryptocurrency is moved into an inaccessible wallet, reducing its supply.
Further, Shiba Ini price may rebound as the number of transactions in Shibarium rise. These transitions have already jumped to over 947 million, meaning that they will cross the 1 billion mark soon. The number of addresses in Shibarium has jumped to 99.99 million, while the number of accounts rose to 240k.
Further, there is a likelihood that the Securities and Exchange Commission will approve a spot Shiba Inu ETF later this year. Such a fund will lead to more inflows in Shiba Inu from institutional investors.
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