Shiba Inu (SHIB), a popular meme coin, has experienced significant price volatility in recent months. While the broader cryptocurrency market faces a downturn, an analyst presents a bullish prediction for SHIB based on the Elliott Wave Theory. However, prevailing market sentiment and on-chain data paint a contrasting picture.
Market analyst Big Mike utilizes the Elliott Wave Theory, a technical analysis framework, to argue for a potential SHIB price surge. This theory proposes that trends unfold in a specific five-wave structure. Big Mike suggests SHIB is currently navigating the third wave of a larger uptrend on the weekly chart.
Read Also: Analyst Says 5th Elliott Wave Will Drive Shiba Inu (SHIB) to $0.0001. Here’s How
According to this analysis, the first wave peaked in early August 2023 at $0.00001135, followed by a correction (wave two) that drove the price down to $0.0000661 in October 2023. Big Mike anticipates wave three to propel SHIB beyond its previous highs, potentially reaching $0.0005059. This signifies a staggering 2000.91% increase from the current price of around $0.00002408.
Despite Big Mike’s optimistic outlook, current market conditions and on-chain data suggest significant challenges for a substantial SHIB rally. Bearish sentiment dominates the market, with investors depositing a net value of $11.359 million in SHIB to exchanges since April 22nd. This trend typically indicates increased selling pressure, potentially hindering upward momentum.
Santiment, a crypto data analysis platform, corroborates this concern. Their data reveals that addresses holding significant amounts of SHIB (between 1 million and 1 billion tokens) have consistently sold off their holdings. In addition, wallets holding between 100 million and 1 billion SHIB have offloaded a substantial 1.98 trillion tokens since February 24th.
A potential counterpoint to the bearishness is the gradual increase in Shiba Inu’s social dominance. This metric gauges the level of social media activity surrounding a cryptocurrency and can sometimes precede price hikes.
Read Also: XRP to $14? Top Analyst Displays Multiple Technical Patterns For Major Breakout
The future price trajectory of Shiba Inu remains uncertain. While the Elliott Wave Theory suggests a potential surge, prevailing market sentiment and on-chain data indicate significant obstacles.
The rise in social dominance offers a sliver of optimism, but its impact is difficult to predict precisely. Investors interested in SHIB should carefully consider both the bullish and bearish arguments before making investment decisions.
Follow us on Twitter, Facebook, Telegram, and Google News
As summer approaches, savvy investors are on the lookout for promising cryptocurrencies priced under $1.…
The Shiba Inu ecosystem is gearing up for an exciting development alongside its long-term partner,…
According to the latest round of 13F filings, a handful of institutional bigwigs went ham…
BlockDAG's upgraded dashboard is making waves with its real-time transaction tracking features, setting new standards…
Despite its poor performance, XRP has been a center of investor interest. However, a recent…
As Times Tabloid reported earlier, the Shiba Inu project team has announced the official launch…