Shiba Inu (SHIB) has faced a tumultuous period, recently falling below several critical support levels. However, emerging on-chain data suggests that the worst may be over and recovery may be on the horizon for the cryptocurrency.
Challenges Faced by Shiba Inu (SHIB)
In order to understand Shiba Inu (SHIB) future prospects, it is pertinent to explore its past.
Starting in March, SHIB experienced a decline after a notable surge in February. Although it managed to hold above the psychological support level of $0.000010 during March, the cryptocurrency experienced a substantial 21.72% drop over the following two months pushing it below this critical level.
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Current Market Situation
This month, the cryptocurrency experienced a 19.44% decline and breached psychological support levels at $0.000009, $0.000008, and $0.000007. Surprisingly, notwithstanding this bearish scenario, the available data suggests a potential turnaround for Shiba Inu.
Improving Sentiments and Investor Confidence
Recent data from the behavior analytical resource, Santiment, shows a gradual improvement in weighted sentiment for Shiba Inu over the past week.
Shiba Inu’s weighted sentiment is currently at -1.395, an improvement from its previous weighted sentiment of -1.543 on June 9. Despite remaining at the negative part of the spectrum, the rise in sentiment signifies a possible shift towards positive territories, indicating a renewed interest among investors.
In addition to the increase in weighted sentiment, investor confidence in Shiba Inu has shown signs of recovery despite the market turbulence caused by recent developments surrounding lawsuits filed against Binance and Coinbase by the U.S. SEC.
This resilience suggests that market participants are re-engaging and could potentially drive increased demand for SHIB tokens.
Read Also: Can Shiba Inu (SHIB) Hit $0.001? Hear What Google Bard and Microsoft AI Have to Say
Positive Bid-Ask Volume
Data from IntoTheBlock further supports the growing confidence among investors, as the Shiba Inu bid-ask volume on exchanges has witnessed a 5.21% increase. This indicates a bullish trend, reflecting higher buying interest compared to selling interest in the market.
Future Prospects
Shiba Inu is currently up by 1.62% in the last 24 hours, striving to reclaim the $0.000007 territory, to solidify it as a support level and potentially target the $0.000008 level. Whether or not it achieves this is still uncertain.
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