Blockchain

Cardano (ADA), the ninth-largest cryptocurrency in the market, has experienced a significant price breakout, reaching $0.710 on Thursday for the first time since May 2022. 

This marks a pivotal moment for ADA as it emerges from a prolonged consolidation phase encompassing the latter part of 2023 and the initial month of 2024. With the price surge, ADA now sets its sights on the $1 mark, which it last achieved in April 2022.

ADA Primed For New All-Time Highs? 

The recent price breakout has sparked predictions of an imminent continuation of ADA’s uptrend, with notable potential to reach new all-time highs (ATH). Crypto analyst Trend Rider has conducted an in-depth analysis of ADA and issued an alert, signaling the possibility of a new all-time high.

According to Trend Rider, there has been a significant increase in the Trend Strength Indicator, which resembles the beginning of the legendary rally that took ADA to $3.6. In addition, with Bitcoin (BTC) nearing its peak, the analyst believes the stage is set for ADA to close the gap and rally to $3.6.

Furthermore, Trend Rider highlights the bullish nature of ADA’s Moving Average Ribbon and Money Flow Oscillator, which have turned positive after 200 weeks. These macro factors underscore the positive sentiment surrounding ADA’s potential for growth. 

Additionally, the analyst emphasizes that ADA demonstrates bull run signals previously observed when the token traded at $0.10, just before it skyrocketed to $3. Trend Rider suggests that the shift in trend indicators from bearish or neutral to bullish further reinforces the positive outlook for ADA’s price trajectory. 

Cardano Market Cap And Trading Volume Soars

Coupled with ADA’s bullish indicators, Cardano has seen notable growth in various key metrics, according to data by Token Terminal. 

Over the last 30 days, ADA has shown significant progress in market capitalization, trading volume, and fee generation. At the same time, fees incurred by ADA holders have decreased, providing further insight into the token’s recent performance.

Cardano’s fully diluted market capitalization has surged to $28.09 billion, marking a 27.4% increase over the past month. This metric accounts for the potential total value of all ADA tokens if they were in circulation. 

Similarly, the circulating market capitalization, which reflects the value of ADA tokens currently available, has experienced a significant boost, reaching $21.94 billion, representing a 27.7% rise.

Cardano has demonstrated its popularity in terms of trading activity, as the token’s 30-day trading volume stands at $14.69 billion. Although this figure reflects a minor decline of 4.0% compared to the previous month, it still showcases ADA’s robust liquidity and investor interest.

As for fees incurred within the Cardano ecosystem, the 30-day fee generation amounted to $396,78K, indicating a decrease of 9.7%. This fee decline suggests improved cost-efficiency for ADA holders during the given period. 

Currently, ADA is trading at $0.682, experiencing a slight correction in the past few hours. However, when examining longer time frames, the token has demonstrated significant gains of 14%, 13%, and 30% over the past seven, fourteen, and thirty days, respectively. 

Featured image from Shutterstock, chart from TradingView.com

Bitcoin, the world’s largest cryptocurrency, faces a potential downturn in its price following the anticipated halving event scheduled for April, according to analysts at JPMorgan led by Nikolaos Panigirtzoglou.

This event occurs approximately every four years and is expected to slash miner rewards from 6.25 BTC per block to 3.125 BTC. As a result, JPMorgan analysts have warned that the Bitcoin price could drop toward $42,000 post-halving.

Reason Behind The Potential Crash To $42,000

The analysts attribute this potential decline to the reduced profitability for miners and the subsequent increase in BTC production costs. The analysts disclosed that the Bitcoin production cost has historically served as a “lower bound” for its prices, with the estimated range doubling post-halving to around $53,000.

Nonetheless, a potential 20% reduction in the BTC network’s hashrate looms is primarily attributed to the departure of less efficient mining rigs from the operational landscape.

Consequently, this scenario may drive the estimated production cost range to $42,000, calculated under an average electricity cost of $0.05 per kilowatt-hour (kWh).

According to the analyst, Bitcoin miners with “below-average electricity costs” and “more efficient equipment” are expected to fare better following the halving event. In contrast, those with “higher production costs” may struggle to remain profitable.

Consequently, analysts anticipate an increased concentration within the Bitcoin mining industry, with publicly listed miners likely to hold a higher share.

Moreover, there is the prospect of “horizontal integration” via “mergers and acquisitions” among miners spanning different regions, aiming to leverage “synergies and minimize” collective operational expenses.

Bitcoin Market Sentiments And Potential Surge

Meanwhile, as JPMorgan analysts suggest a potential drop in Bitcoin’s price post-halving, Hunter Horsley, CEO of Bitwise, remains optimistic about Bitcoin’s long-term outlook. Horsley predicts that the cryptocurrency will surge to $250,000 sooner than anticipated.

Bitcoin is going to eat into gold’s TAM faster than people expect.

$250k Bitcoin could happen much sooner than most who’ve followed the space for years would imagine.

Why? For 15 years, Bitcoin proved it’s merits but was only accessible to some.

Bitcoin ETFs were Bitcoin’s…

— Hunter Horsley (@HHorsley) February 28, 2024

Meanwhile, many metrics within the BTC market signal a potential surge for Bitcoin. On-chain data reveals that the Bitcoin MVRV ratio has reached levels reminiscent of the parabolic bull run experienced in 2020, suggesting a forthcoming surge may be imminent.

MVRV hit 2.5, indicating a +150% average profit for all #Bitcoin wallets.

In Nov 2020, MVRV was 2.5 at $18K, preceding the all-time high and parabolic bull run.https://t.co/cx8nYhNeeI pic.twitter.com/PgRLietkkz

— Ki Young Ju (@ki_young_ju) 2

Amid these varying forecasts and market sentiments, BTC trades at $63,391, marking a slight retracement from its recent peak above $64,000 – the highest level traded in the past two years.

Featured image from Unsplash, Chart from TradingView

Data shows the cryptocurrency futures market has seen liquidations amounting to $700 million in the past day as Bitcoin has gone through its volatility.

Bitcoin Has Seen Intense Price Action In Past 24 Hours

The past day has been a bit of a rollercoaster for Bitcoin, with the asset registering sharp price action in both directions but ultimately going up as the bulls win out.

The chart below shows what the price action for the cryptocurrency has looked like recently.

From the graph, it’s visible that Bitcoin initially witnessed some sharp bullish momentum, in which the coin not only broke above the $60,000 level, but went up to touch the $64,000 mark.

This high, which is the peak for the year so far, only lasted briefly, however, as BTC crashed down spectacularly to under the $59,000 mark. The asset has since recovered to higher levels, now floating around $62,700.

The rest of the cryptocurrency sector has also gone through its volatility, with prices fluctuating across the coins. As is usually the case with such sharp price action, the futures market has suffered many liquidations.

Crypto Futures Market Has Gone Through A Squeeze In The Past Day

According to data from CoinGlass, the cryptocurrency futures market has witnessed the liquidation of contracts worth more than $700 million in the last 24 hours.

The table below displays the relevant information about the liquidations.

It would appear that only $131 million of the liquidations came within twelve hours, suggesting that most of the flush was situated inside the preceding half-day period. This makes sense, as Bitcoin was most volatile inside this window.

It also seems that the long-to-short ratio in this liquidation event has been quite balanced, even though the price has increased in the past day. This would suggest that some aggressive longing occurred as Bitcoin approached $64,000, and the subsequent pullback wiped these top buyers.

The table below shows how the distribution has looked for the various symbols.

As is generally the case, Bitcoin futures contracts have again been responsible for the largest portion of the total market liquidations, contributing around $270 million.

What’s different this time, however, is that this share, although the largest, isn’t even half the total liquidations. This could come down to the fact that speculators may now be playing around with altcoin positions after gaining confidence from the BTC price surge.

Dogecoin, the best performer among the top coins with its 34% jump, has occupied the largest share among the alts, with almost $51 million in liquidations.

The price of Bitcoin seems on the brink of blasting past its all-time high (ATH) at the high area of its current levels. The cryptocurrency has been on a bull run due to the launch of spot Bitcoin Exchange Traded Funds (ETF), which officially onboarded institutions to the nascent sector.

As of this writing, Bitcoin (BTC) trades at around $62,900 with a 3% profit in the last 24 hours. In the previous week, the cryptocurrency recorded a critical 22% profit. It stood as one of the three top gainers in the top 10 by market cap, only surpassed by Solana (25%) and Dogecoin (57%) in the same period.

Bitcoin-Based Derivatives Hint At Further Gains

Data from the derivatives platform Deribit indicates a spike in long positions by Options operators. Since early February, these traders have accumulated important call (buy) contracts with a strike price above $65,000.

At first, as the report indicates, the increase in bullish positions was thought to be part of a Bitcoin “Halving” strategy. However, the BTC ETF Flows seem to be the key component behind the rally.

As cryptocurrency entered the $60,000 area, several operators rushed to accumulate call contracts, leading to a Fear Of Missing Out (FOMO) rally to its current levels. The chart below shows that the FOMO buying began when BTC breached the $57,000 level.

The spike in trading activity during yesterday’s session led to a significant jump in Implied Volatility (IV). Overleveraged positions further propelled the metric, Deribit stated:

The 62k to 64k surge was so quick, and with high leverage across the whole system, that when sales hit the market a cascade sent BTC down to 59k in 15mins, and some Alts (also massively leveraged) dropped 50% on some exchanges before promptly bouncing as BTC jumped to 61.5k.

As the market continues to experience sudden moves due to the high IV, there is little change in the market structure in the derivatives sector. In other words, Deribit still records a lot of bullish positions for the coming months, which suggests optimistic conviction by these players.

BTC Price On The Short Timeframe

Despite the bull run, the Bitcoin price could dip as euphoria takes over the market. According to economist Alex Krüeger, the spike in trading volume across the derivatives sector indicates the formation of a “local top.”

The analyst believes that retail has returned to the market driven by FOMO, which often hints at short-term predicaments for long traders. Krüger predicted further gains into the $70,000 area via his official X account and then a drop into the $55,000 area.

The analyst stated:

ATH are inches away. That’s price discovery territory. Thus very easy for things to get even crazier. This is just not where one opens new longs. Too easy to get a quick flush out of nowhere. Ideally we see funding cool down and price consolidate below ATH then break out.

Cover image from Dall-E, Chart from Tradingview

Justin Sun, the co-founder of Tron–a smart contracting platform for deploying decentralized applications (dapps), is once again moving and shuffling millions of dollars. According to Lookonchain data on February 29, Sun reportedly transferred 100 million USDT to Binance, days after moving huge sums earlier this week.

Justin Sun Holds Millions Of ETH: Will The Co-founder Buy More?

From February 12 to 24, a wallet associated with Sun acquired 168,369 ETH for an average price of $2,894. This purchase, valued at roughly $580.5 million, currently holds an unrealized profit of around $95 million. Profitability could increase considering the sharp demand for crypto, especially top coins like Bitcoin and Ethereum, in recent days.

The Ethereum price chart shows that ETH has been on a clear uptrend, rising from around $2,200 in early February to over $3,450 when writing. At this pace, and considering the institutional interest in potent crypto assets, including ETH, the odds of the second most valuable coin stretching gains will be highly likely.

As Bitcoin inches closer to $70,000, the probability of Ethereum also tracking higher toward its all-time high of around $5,000 will be elevated.

Since ETH already owns a big stash of coins, there is speculation that the co-founder will double down, buying even more coins. The crypto community will continue watching the address until this happens and there is solid on-chain data to support the purchase.

Spot Ethereum ETFs And The Dencun Upgrade Are Key Updates

So far, optimism is high, especially among the broader altcoin community. As Bitcoin races to register new all-time highs pumped by institutional billions, eyes will be on the United States Securities and Exchange Commission (SEC). There are multiple applications for a spot Ethereum exchange-traded fund (ETF). 

The agency has not provided a definitive timeline for approving or rejecting the derivative product. There is regulatory uncertainty around the status of ETH, a significant headwind that might delay or even prevent the timely authorization of this product.

Still, the community is looking forward to the next communication in May. If the spot Ethereum ETF is a go, the coin will likely rally to new all-time highs, following Bitcoin.

However, before then, eyes are on the expected implementation of Dencun. The upgrade addresses challenges facing Ethereum, including scalability. Through Dencun, Ethereum developers hope to lay the base for further throughput enhancements in the coming years.

With higher throughput, transaction fees drop, overly improving user experience. This upgrade might go a long way in cementing Ethereum’s role in crypto, wading off stiff competition from Solana and others, including the BNB Chain.

Like almost every other crypto token in the market, Solana (SOL) is enjoying a rally of its own, rising to nearly $125 in the last 24 hours. Interestingly, this looks like only the beginning of good things to come for the crypto token, as crypto analyst Hansolar predicts that it could run massively in this bull cycle. 

SOL To Rise To $600

Hansolar mentioned in an X (formerly Twitter) post that SOL will rise to $600. This “fun” target was laid on the premise that SOL could be the new ETH this cycle. Assuming this is the case, the analyst expects SOL to take off later than BTC and ETH. This is because ETH took off when BTC broke into all-time highs (ATHs) during the last bull run. 

Therefore, SOL, following a similar trajectory to ETH in the last cycle, might not take off until BTC and ETH break into ATHs. Hansolar suggested that SOL’s takeoff will be sparked by retail, stating that there will be a time when these investors buy into the crypto token “as the high beta catch-up play.”

Hansolar also offered more evidence to suggest that SOL is likely to replicate ETH’s run in the last bull cycle. He stated that the crypto token was currently at around 50% from its ATH, similar to how ETH was around the 50% mark as BTC was nearing its ATH in the last cycle. Meanwhile, Hansolar offered “fun” targets for Bitcoin and Ethereum, stating they will hit $150,000 and $10,000 in this bull cycle. 

Interestingly, Hansolar’s $600 price prediction for Solana looks very conservative compared to Crypto YouTuber Jake Gagain’s prediction that SOL will hit $750. The analyst stated that the crypto token will hit this price level by next year. 

Between Solana And Ethereum

Crypto analyst Santiago Santos once echoed similar sentiments to Hansolar when he drew a comparison between Solana and Ethereum, noting that the former is going through what the latter did during the ICO boom. He, however, suggested that Solana would perform way better than Ethereum, as it is seeing “meaningful usage and growth,” unlike Ethereum then. 

Santos further asserted that Solana would “converge on Ethereum faster than most believe.” Solana, commonly referred to as the “Ethereum Killer,” has indeed been on the heels of Ethereum as of late. Solana even once surpassed Ethereum in 7-day DEX (decentralized exchange) volume. 

The tremendous rise in Solana’s network activity is believed to be one of the factors driving SOL’s price and what could push it to hit the $600 mark and possibly $750, like Gagain predicted.

At the time of writing, SOL is trading at around $124, up over 13% in the last 24 hours, according to data from CoinMarketCap. 

Solana (SOL) has reached a new 22-month high, demonstrating a remarkable 28% uptrend over the past month. However, the Solana-based meme coin, Bonk Inu (BONK), has captured investors’ attention with its explosive performance last month. 

Bonk Inu Outperforms PEPE

According to CoinGecko data, BONK has achieved a staggering 102% price uptrend in the last 7 days and an impressive 103% increase in the past month, reaching a trading price of $0.00002510 and attaining a 3-month high. 

In addition, the meme coin has experienced significant growth in market capitalization, reaching $1.6 billion and surpassing renowned tokens such as Pepe Coin (PEPE) to secure the 66th position among all cryptocurrencies, highlighting the growing interest in BONK as the cryptocurrency market experiences a resurgence of bullish sentiment fueled by Bitcoin’s (BTC) price uptrend.

Accumulating data from blockchain company Lookonchain shows the growing interest in Bonk Inu. In addition to the 50% increase in a single day, one wallet reportedly accumulated 98 billion BONK ($1.54 million) from the centralized crypto exchange (CEX) Binance just before the price increase. 

According to Lookonchain, the SmartMoney wallet currently holds 319.44 billion BONK tokens worth approximately $7 million, enjoying a profit of $2.9 million, which could have further contributed to the price surge in the past 24 hours. 

As of the latest update, the trading volume of Bonk Inu stands at $794,842,219 in the last 24 hours, demonstrating a substantial 74.30% increase compared to the previous day. This surge in trading volume indicates a recent rise in market activity surrounding the meme coin, reflecting growing investor participation and attention.

Potential Pullback Ahead? 

As the token enjoys one of its best trading months since its launch, crypto analyst Altcoin Sherpa expressed positive sentiment towards Bonk Inu, highlighting its potential for further growth. 

Altcoin Sherpa stated that Bonk Inu looks promising due to its relative underperformance compared to other meme coins, coupled with a notable uptrend pattern. The analyst wouldn’t be surprised to see Bonk Inu target previous highs and make further gains, although he suggested that a potential pullback may occur.

As the analyst suggests, the $0.00001940 price level may serve as a crucial support level for the BONK token in the event of a potential pullback or price correction. This level is significant as it would help maintain the current uptrend pattern observed on its daily chart. 

However, suppose this support level fails to hold. In that case, it’s possible that BONK could see a further price decline towards the $0.00001500 level, which acts as the ultimate support before a potential drop to the $0.00001350 mark, key for the token’s prospects as it represents the last line of defense to prevent a fully formed downtrend in the cryptocurrency’s performance.

On the other hand, when analyzing the BONK/USD 1-W chart, it is important to note that there are no prominent resistance levels. The chart above shows thin lines known as “wicks” above the candlesticks of the token since its launch on December 15th. 

This suggests that no significant obstacles prevent the token from reaching its all-time high of $0.0005487. The ability to maintain its current uptrend or potentially experience renewed bullish sentiment after a pullback will determine whether BONK can surpass this previous high.

Featured image from Shutterstock, chart from TradingView.com

Recently, a PEPE whale made a series of moves that resulted in over $3 million in realized profits after the token’s recent price surge. The whale then took a new position and showed potential gains.

Whale’s Big Moves Bring Big Money

As reported by Lookonchain, a blockchain analytics platform, a whale made a big move yesterday after depositing almost 2 trillion PEPE tokens to one of the largest crypto exchanges in the world.

This whale’s shopping spree started June 7, 2023, when Pepe Coin traded at $0.000001054. The address accumulated 1.97 trillion Pepe tokens from June until December last year.

Just over two months after the 6-month buying spree, the whale deposited the entirety of its PEPE holdings, worth around $6.07 million, to Binance. According to the blockchain analytics platform, the whale made over $3.49 million in profit in just a few hours.

A smart whale deposited all 1.97T $PEPE($6.07M) to #Binance and made a profit of $3.49M.

Then he changed his position from $PEPE to $SHIB, withdrawing 75.9B $SHIB($893K) from #Binance 3 hours ago.https://t.co/X67O2VjR1y pic.twitter.com/nL7rRDZCXT

— Lookonchain (@lookonchain) February 29, 2024

The whale changed its position and bought 75.9 billion SHIB tokens just a few hours later. Suggesting that the investor saw potential in Shiba Inu’s future price performance.

Whales tend to hold massive influence over the market as any movement of their large holdings could swing the market’s sentiment over a cryptocurrency.

Typically, when a whale withdraws its holdings from an exchange, investors interpret it as a sign of long-term confidence in that cryptocurrency. On the contrary, when a whale sells large amounts of a coin, investors might take this as a lack of confidence in the token.

At the time of the report, the whale’s massive acquisition of SHIB was worth around $893,000. However, as of this writing, the tokens are worth over $1 million, according to Etherscan’s value. This showcases that the investment in SHIB increased its value by over $100,000 in less than 12 hours.

PEPE And SHIB Performance

The whale’s new investment, Shiba Inu, the 19th largest cryptocurrency and the second largest memecoin by market cap, has shown incredible performance in the last 24 hours.

During the last day, SHIB’s price skyrocketed 25.5% and currently trades at $0.00001388. Additionally, the token’s market activity has increased by 127.50%, with a trading volume of over $2.65 billion in the last 24 hours.

On the other hand, PEPE was making headlines yesterday due to its impressive 140% price jump from the previous week. The frog-themed memecoin seems to be in the middle of a price resurgence fueled by the market dynamics and its social media popularity.

However, PEPE trades at $0.000002891 at writing time, representing a 12% decrease in the last 24 hours. Compared to the token’s yesterday performance in the same time frame, a 59.47% increase from the day prior, PEPE seems to be facing a momentary slowdown.

Similarly, PEPE’s trading volume and market cap decreased by 22.47% and 11.96% on the last day. These metrics hint at a reduction in recent market activity for the cryptocurrency.

However, its performance in longer timeframes, especially the 7-day 142% price surge, suggests that the memecoin is still outperforming the global cryptocurrency market, according to CoinGecko.

February was undoubtedly an amazing month for Bitcoin, with the cryptocurrency going on a 39% surge to cross over $60,000. Notably, price history has shown this is the second most profitable February in the history of Bitcoin and the most profitable February in 11 years. 

Indeed, many market players have anticipated this price surge to continue throughout 2024 as the next Bitcoin halving approaches. According to an analysis from trading expert Peter Brandt, the price of BTC is set to skyrocket to $400,000 after the next halving.

Crypto Expert Peter Brandt Predicts Bullish BTC Price Points After Halving

Bitcoin halvings, which slashes the mining reward for miners into two, are known to trigger massive bull runs before and after they are completed. Indeed, the pre-halving bull run seems to have repeated itself, as Bitcoin has jumped over multiple resistance levels since the beginning of January and is now nearing its all-time high of $69,000, which it reached in November 2021.

Brandt’s analysis is majorly based on gains after past halvings as a percentage of gains before halvings. Consequently, the analyst projected past price behavior into the future after April’s halving is completed. 

Per his analysis, BTC’S current cycle reached its low in November 2022 and is now at 75 bars (weekly bars). If the bull trend extends 75 bars after the next halving, a price high of $150,000 is estimated to occur in early October 2025. 

Brandt’s analysis also pointed out three different scenarios that occurred after the last three halvings. After the first halving in 2012, Bitcoin went on a 5x gain as a percentage of its pre-halving gains. If the same were to happen after 2024’s halving, Bitcoin could reach $275,000. 

Similarly, 2016’s halving saw Bitcoin going on an 8x gain of its pre-halving gains. If Bitcoin were to go on a similar 8x route, it could reach as high as $400,000 before the next market phase. Lastly, 2020’s halving produced a modest 2x return of its pre-halving gains. A 2x repeat applied to a BTC price of $50,000 would see the crypto reaching $100,000 at the end of the current market phase. 

Bitcoin Set To Keep Shining

At the time of writing, Bitcoin is trading at $62,600, up by 21.25% in the past seven days. From a technical perspective, Bitcoin looks prime to continue on its bull run in the current market cycle with virtually no resistance

On-chain fundamentals point to increased accumulation from traders. Data shows that even short-term holding whales are now sitting on over $7.3 billion in unrealized profit, but they still continue to hold. If this bullish sentiment continues, we could see Bitcoin reaching a new all-time high in March.

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.

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.

$ALTS

Altcoin Market Cap is on the right track#BTC #Crypto #Bitcoin pic.twitter.com/wNJ7grLbFl

— Rekt Capital (@rektcapital) February 29, 2024

#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%.

#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.