The meme coin niche has been one of the biggest beneficiaries of the latest market pump, with Shiba Inu (SHIB) standing out as a prime example.

The price of the self-proclaimed Dogecoin killer has climbed to a three-month peak, and some industry participants believe there is still plenty of room for further growth. However, certain factors suggest the rally may not be as sustainable as the bulls would hope.

Parabolic Jump Incoming?

As of press time, SHIB trades at around $0.000005455 (per CoinGecko), marking a substantial 22% increase on a weekly scale. Its market capitalization has surpassed $3.2 billion, solidifying the token’s position as the second-largest meme coin.

According to Crypto Patel, the latest revival is nothing compared to what might be coming next. The analyst noted that SHIB has completed a 95% macro correction over the years and is now trading within a historical accumulation zone, where the weekly structure is repeating the fractals that preceded previous price explosions. That said, they claimed the coin could be gearing up for a 2,200% rally.

The analyst’s bullish scenario includes a weekly close above $0.000006697, which, combined with a successful retest and rising volume, might trigger the next HTF expansion. At the same time, a weekly close below $0.0000035 would invalidate the current accumulation thesis.

Crypto With Gopal presented an even more optimistic prediction. He opined that SHIB has printed a textbook falling wedge formation and is consolidating inside a long-termsedcending structure, with sellers losing momentum as price compresses near the lower boundary. The analyst assumed that a clean break above the upper trendline could fuel a major rally to as high as $0.00025, or a nearly 5,000% increase from the current levels.

“Bulls are waiting for confirmation – major breakout could be next,” he added.

It is important to note that some popular market observers touched on SHIB prior to the latest market revival. Last week, David Gokhshtein claimed that people writing off DOGE, SHIB, and PEPE “are going to be in a rude awakening.” For their part, Whale News Daily suggested that Shiba Inu’s ignition will be “epic” and that it will start a proper altseason.

The Concerning Signals

Despite the positive performance, certain elements suggest that SHIB may not be completely out of the woods. Data show that Shiba Inu’s burn rate has declined by more than 91% over the past month, meaning the asset’s supply remains enormous after the team and community have scorched only a negligible amount of coins.

Next on the list is Shibarium’s waning activity. Daily transactions processed on the layer-2 scaling solution are in the mere thousands, signaling weak user engagement and potentially undermining investor confidence.

Source: CryptoPotato