Shiba Inu (SHIB), a popular meme coin, has endured a rough two weeks in the bear market. The cryptocurrency’s price has slumped significantly, reflecting broader market trends. However, recent technical analysis suggests a potential reversal of fortune for SHIB investors.
At the time of writing, SHIB trades at $0.0000202, representing a 12% decline over the past week and a steeper 19% drop compared to its price a month ago. This bearish pressure forced SHIB to revisit the $0.000019 price channel, last seen during the April 13th correction triggered by global political tensions. While SHIB briefly touched a low of $0.00001965 three days ago, it has only managed a less than 4% recovery to its current price.
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Despite the recent price slump, a technical indicator on the SHIB daily chart is sparking optimism among investors. Analyst Ali Martinez identified a buy signal generated by the TD Sequential indicator, suggesting a potential short-term price increase for SHIB.
The TD Sequential indicator has a history of providing accurate predictions for SHIB, and Martinez has documented several instances where the indicator’s signals aligned with subsequent price movements. While the current buy signal doesn’t specify a target price, it suggests a potential buying opportunity for investors anticipating a rebound.
Beyond the TD Sequential indicator, other factors suggest a potential turnaround for SHIB. A recent tweet from Santiment, a market intelligence platform, highlights a declining supply of SHIB available for trade on centralized exchanges.
This trend indicates that investors are holding onto their SHIB tokens, potentially limiting downward pressure on the price. Additionally, reports suggest continuous accumulation of SHIB by large investors, often referred to as “whales.” This buying activity by whales further strengthens the possibility of a price increase.
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It’s important to note that while the TD Sequential indicator suggests a potential upswing, it is not without limitations. In a previous analysis conducted seven weeks ago, Martinez identified a bull flag pattern on the SHIB 24-hour chart.
Based on this pattern, he predicted a buy-in opportunity at $0.00001834, anticipating a bullish breakout that could propel SHIB to $0.00007232. However, the recent price dip surpassed the predicted entry point, highlighting the inherent uncertainty associated with technical analysis.
While the recent price performance of SHIB has been negative, technical indicators and on-chain data suggest a potential reversal. The TD Sequential buy signal and decreasing exchange supply are positive signs for SHIB investors.
Disclaimer: This content is informational 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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Los Altos, United States / California, 26th September 2024, Chainwire
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