Analyst Suggests A 2021-Like Boost for Shiba Inu Is Imminent Amid Current Market Conditions

Shiba Inu (SHIB) continued to hover around $0.00001239 on Tuesday after posting a modest 2.71% dip over the past 24 hours. Despite the subdued movement, market analysts are pointing to an emerging trend that could ignite a rally reminiscent of SHIB’s explosive 2021 surge.

Notably, throughout April, SHIB has seen relatively muted price action. The token hit a local high of $0.000013 on April 1 but has since pulled back by roughly 6%. However, a combination of on-chain developments and bullish technical signals suggests a potentially dramatic shift may be brewing beneath the surface.

One of the most compelling indicators came on Monday, when SHIB’s token burn rate skyrocketed by an eye-popping 825%, with over 26 million tokens being permanently removed from circulation in just one day, adding to the project’s deflationary appeal. Notably, SHIB’s revamped burn mechanism has garnered significant investor attention, helping to stabilize its price and reignite optimism on social media. With 589 trillion tokens in circulation, if another major token burn occurs, SHIB’s price could experience a notable increase.

Meanwhile, amid these developments, several analysts predict that SHIB will spike in the coming days. On Monday, crypto strategist Patrick Schmitt drew comparisons between SHIB’s current consolidation and its behavior leading up to the historic 2021 rally.

“I remember April 2021 like it was yesterday… nothing was moving and it felt like it was over. Then $SHIB started to pump and kicked it all off,” Schmitt tweeted. “I don’t know which one will kick it off this time, but I’m certain history might repeat—even with different metrics and conditions.”

Back in 2021, SHIB surged over 1,000% within weeks after months of sideways trading. Now, technical analysts suggest a similar pattern could be forming.

Elsewhere, analyst Ali Martinez highlighted a buy signal on SHIB’s weekly chart triggered by the TD Sequential indicator, often a precursor to sharp upward moves. Martinez also pointed to a MACD crossover and a Relative Strength Index (RSI) above 50 as signs of strengthening bullish momentum.

Further strengthening the bullish case, the token has reclaimed its 20-day Exponential Moving Average (EMA) at $0.00001220, signaling that traders are positioning for a potential breakout.

On the chart, SHIB also appears to be forming a bullish channel, with support consolidating around $0.000012 and resistance near $0.00001380. The weekly chart also shows a “9” candle, a signal often associated with trend exhaustion and potential reversals, alongside an RSI reading of 53, just above the neutral threshold.

That said, if this momentum continues to build, analysts believe SHIB could soon retest recent highs and potentially spark a fresh wave of investor interest, potentially repeating a 2021-like move.