Shiba Inu (SHIB), a popular meme coin, has been under the watch of crypto analyst Crypto Lalit. Lalit emphasizes the importance of SHIB surpassing a crucial resistance level for a potential price surge.
Since early June, SHIB’s price has largely followed a downward trendline, repeatedly testing but failing to breach this key resistance level. As of recent data, SHIB sits slightly below the resistance point at $0.0000172, with a recent uptick hinting at a possible breakout attempt.
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Breakout Potential and Trading Strategy
Crypto Lalit suggests that a confirmed breakout above the resistance line could trigger a significant price increase for SHIB. The analyst proposes a long position on SHIB/USDT with 10x leverage if the breakout is validated. This strategy capitalizes on the common market trend where overcoming a persistent resistance level often leads to substantial price gains.
Bulls vs. Bears: A Balancing Act
An analysis of on-chain data by IntoTheBlock reveals a relatively balanced distribution between SHIB bulls and bears from September 2020 to May 2024. Notably, the 2021 bull run witnessed a significant increase in bullish addresses, indicating a substantial purchase of SHIB by large investors.
However, the post-2021 correction saw a rise in bearish addresses as the price declined. The period from 2022 to early 2023 displayed a market consolidation phase with a balanced distribution between bulls and bears.
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Read Also: Shiba Inu (SHIB) Price Prediction For January 2024. Between Bulls and Bears
Technical Indicators Suggest Potential Buying Opportunity
On-chain analyst Ali Martinez highlights that the TD Sequential indicator recently generated buy signals for SHIB, along with Solana and Cardano, on a daily timeframe. This signal follows a market shakeout that drove many altcoins to new multi-week lows. For SHIB, this resulted in a bottom at $0.00001642, representing a 38% decline from its June 5th peak.
These technical indicators suggest that patient investors might view this as an opportune moment to enter the market, anticipating a potential rebound in SHIB’s price.
Although the immediate future of SHIB remains uncertain, the potential breakout above the resistance level and the technical buy signals offer hope for bulls. However, investors should conduct their research, understand the inherent risks of cryptocurrency investments, and employ proper risk management strategies before making investment decisions.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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