Shiba Inu (SHIB), the meme-based cryptocurrency, has experienced a significant price decline in recent months. However, analyst Alikze on TradingView, who accurately predicted the current drop, remains optimistic about the token’s future. Alikze’s analysis, initially presented in late May, outlined various potential price paths for SHIB.
Accurately Predicting the Downturn
At the time of the analysis, SHIB was trading between $0.000024 and $0.000026, with many analysts predicting a surge towards $0.00003. Alikze, however, presented a more cautious view, anticipating steeper declines for SHIB. He outlined three potential scenarios, culminating in a price target exceeding $0.00005 but with varying courses.
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The first scenario mirrored most predictions, with SHIB rising directly to $0.00005. The second scenario involved a retest of a support level between $0.00002084 and $0.00001786, followed by a surge to $0.00005.
Unfortunately, the third scenario, which predicted a breach below the support level and a drop to $0.00001707, came to fruition. As of June’s close, SHIB had fallen below this level, currently trading at $0.00001658.
A Potential Rebound and Price Target Revisited
Despite the recent downturn, Alikze anticipates an imminent recovery, with the potential for further price declines towards the Fibonacci 100 level, aligning with $0.00004. This area is expected to act as a springboard for significant growth.
Alikze’s original target price range of $0.00005387 to $0.00005937 remains in effect. This resistance area was last seen in November 2021, during the decline from SHIB’s all-time high of $0.00008845. Analyst Davie Satoshi also shares Alikze’s optimism, projecting a similar price target for SHIB in the near future.
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Supporting Factors for the Rally
The ongoing trend of exchange net outflows suggests a potential increase in demand for SHIB. CryptoQuant data reveals that since June 2nd, SHIB has experienced 23 consecutive days of negative exchange flows, exceeding 8.6 trillion tokens over the past month. This signifies a potential reduction in selling pressure and accumulation by investors.
Read Also: SHIB Burn Rate Surges Over 12,800%, Analyst Foresees Imminent Rally
Furthermore, SHIB’s current Relative Strength Index (RSI) of 33.68 indicates oversold territory. This aligns with a recent Santiment report highlighting a drop in SHIB’s MVRV ratio to -1.5, which can be interpreted as a buying opportunity for some investors.
While SHIB has experienced a challenging period, Alikze’s analysis offers hope for investors. Technical indicators and on-chain data support the potential for a rebound and a return to the $0.00005 territory. However, investors should be aware of the volatility of the crypto market and should conduct extensive research before making any investments.
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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