Cryptocurrency traders will be watching closely to see if Shiba Inu (SHIB), which gained huge popularity in 2021, can shake off its meme token status and return to record highs in 2022.

SHIB has maintained its place in the top 20 cryptocurrencies by market cap for some time now, helped by a growing number of holders as more retail investors enter the market and find the asset as a result of the asset’s huge community of users.

In addition, the token has also benefited from its accessibility; people looking to buy Shiba Inu Coin will find it available on all 10 major cryptocurrency platforms, including Binance, Coinbase, KuCoin and Kraken.

CoinGate, Uphold and VirgoCX, three fast-growing exchanges and cryptocurrency trading platforms in the cryptocurrency industry, have also listed the asset.

In addition to that, the asset has begun to find real-world applications, whether it is used in shops as a form of payment or through the development of a ‘Shiba Lands’ in the metaverse, non fungible tokens (NFT), and burn to reduce amount, among many other applications that have increased its viability and increased its usefulness.

Traders want to see SHIB return to its October high of $0.00008, and with ongoing burn contributions, many anticipate it will have a major impact on reducing the supply of SHIB, which will increase its price.

In particular, the price of Shiba Inu increased by 57% since 6 and 8 February, resulting in a swing high of $0.0000351. Consolidation also began as it approached the four-hour demand zone of $0.0000274 to $0.0000289, forming lower highs.

To determine the direction of SHIB, it is necessary to first identify this barrier. The close of the four hour candle below $0.0000274 will invalidate the bottom by causing a lower low to be established. For a 15% correction to the $0.0000235 support level, this development must first take place.

The Global In/Out of the Money (GIOM) model developed by IntoTheBlock lends support to this short-term bearish notion for the price of meme tokens.

This chain indicator indicates that the next stable support level is between $0.0000150 and $0.0000220, with a range of $0.0000150 to $0.0000220. Given that a total of approximately 134,230 addresses acquired a total of 502.58 billion SHIB tokens in this transaction.

If the price falls to the ranges specified above, it is likely that these holders will collect even more tokens, and it is also likely that this is where the SHIB will create a base during a fall.

On the other hand, if this scenario proves the bearish thesis incorrect, it indicates that the bulls are in charge and the Shiba Inu price is likely to break back above $0.00004.

Finally, cryptocurrency trader and host of The Wolf Of All Streets podcast, Scott Melker, noted that SHIB holders for over a year have recently been increasing their holdings over the past month in conjunction with the whale accumulation; he noted that:

“Addresses that have held for more than a year have increased their SHIB balance over the past 30 days by approximately 32.48%. And it appears that institutional or whale appetite has increased recently.”

Melker also noted that large transactions worth more than $100,000 reveal the level of institutional activity on the chain.

He said:

“The volume of these transactions increased significantly this week [7 February], recording multi-month highs. A total of $389.89 million was transacted, but more interestingly, these transactions represent 81% of the total SHIB volume on the chain.”

In light of the growing use of cryptocurrencies in the market, there is a possibility that SHIB could return to, or perhaps surpass, its all-time highs in 2022.

When speculation became rampant, SHIB witnessed massive gains in 2021, as the market saw a significant amount of speculative activity. Despite this, there is always the possibility of dramatic price corrections, particularly given the large number of SHIB whales accumulating in the market recently.

Despite this, as market sentiment slowly shifts to the bullish side, with new users expected to enter the crypto space in the coming years, and with leading platforms such as Robinhood yet to include SHIB, the meme coin has every chance of returning to previous highs this year, but this remains speculative at this point.

Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. By investing, your capital is at risk.

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