The cryptocurrency market experienced a significant downturn recently, with many coins witnessing double-digit losses within a 24-hour window. Shiba Inu (SHIB) was not immune to this trend, dropping by 21.19%. However, some analysts remain optimistic about SHIB’s future price movement.
Analyst Points to Bullish Signs Despite Price Drop
Maximilian, a crypto market analyst, argues that several factors could propel SHIB toward $0.000031, despite the recent price decline. He emphasizes the resilience of SHIB holders, who haven’t abandoned their tokens despite the market downturn.
This unwavering support suggests a potential upswing on the horizon. His chart on TradingView highlights this trend. It reveals that a significant number of Shiba Inu “whales” and “sharks” – large token holders – have maintained their holdings.
Technical Indicators Suggest Potential Recovery
While SHIB’s price dipped to $0.00002783 at the time of Maximilian’s report, it has since fallen further due to the broader market correction. Currently, SHIB is trading at $0.00002204, having breached key support levels at $0.000027, $0.000026, and $0.000025.
Nevertheless, Maximilian believes that SHIB can leverage a potential market recovery to climb back into this channel.
Increased Volume Points to Continued Interest
Another factor bolstering Maximilian’s optimism is the sustained rise in trading volume for SHIB. This indicates ongoing market interest in the digital asset. Notably, SHIB’s trading volume has surged by 25% over the past 24 hours, reaching $1.2billion.
Furthermore, Coinglass data reveals a 5.4% increase in Shiba Inu’s derivatives volume. It is currently at $343.35 million. There is also a simultaneous 21.23% decline in Open Interest, bringing it to $53.12 million. This suggests that some traders are exiting their positions due to the market crash and rising liquidations.
Beyond the trading volume decrease, Maximilian emphasizes the resilience of SHIB’s overall uptrend when considering market adjustments. He highlights the significance of SHIB previously defending the recently breached channel support at $0.000027.
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Potential Price Targets and Technical Formations
With the support level breached, analysts anticipate SHIB’s attempt to reclaim it. Once back within the channel, a potential bounce off the support could propel the price toward the upper trendline, potentially taking SHIB to $0.00003195.
Another analyst, MBM Crypto, identified a bullish pennant formation within SHIB’s recent price movements. MBM Crypto predicts a potential price target of $0.0000348 if SHIB manages to break above the pennant formation.
While the recent market downturn impacted SHIB’s price, some analysts remain optimistic about its future trajectory. The unwavering support from token holders, sustained trading volume, and potential technical breakouts suggest a chance for recovery.
However, acknowledging the inherent volatility of the cryptocurrency market is advised while conducting thorough research before making any investment decisions.
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