Shiba Inu (SHIB) has experienced significant volatility in recent weeks. While the broader cryptocurrency market has undergone a correction, SHIB has been hit particularly hard, disappointing its massive following with a 10.24% decline to $0.00001767 in the last 24 hours. However, some analysts remain optimistic about the meme coin’s long-term prospects.
Javon Marks (@JavonTM1), a prominent analyst, believes the current slump presents a buying opportunity for SHIB. He highlights that despite the recent dip, Shiba Inu remains significantly above its price point before a breakout in February.
During that period, SHIB witnessed a remarkable 370% surge within a week, reaching above $0.00004. While the meme coin failed to sustain those highs, it has managed to hold onto most of the gains achieved during the breakout.
The meme coin is significantly higher than its February low before the breakout, and at the time of Marks’ analysis, SHIB was 100% higher than in February. This suggests an underlying uptrend, according to Marks. Based on this analysis, he projects a potential 294% price increase, propelling SHIB to $0.000081.
A Lofty Shiba Inu (SHIB) Target
Looking ahead, a significant hurdle awaits SHIB in the form of a sell wall positioned slightly below the $0.0001 mark. This wall, identified by IntoTheBlock, represents a substantial resistance level encompassing addresses holding a combined 29.6 trillion SHIB, currently valued at $538 million. Breaching this resistance could be a critical catalyst for a sustained uptrend.
According to Marks, if SHIB can hold above $0.000081, that could propel it to $0.0001553. This will place SHIB above the $0.000139, the top level of this sell wall. It is important to note that Marks has consistently maintained a bullish outlook on SHIB since March, previously suggesting the coin’s potential to reach $0.0001553.
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Bearish Sentiment Might Indicate Incoming Rally
While the recent price decline has caused concern among some investors, on-chain analytics platform Santiment suggests a potential silver lining. The current bearish sentiment surrounding SHIB could be a contrarian indicator, signaling an impending rally.
The logic behind this theory is that when investor sentiment is overly negative, it may represent a buying opportunity as the price has potentially oversold.
The short-term outlook for Shiba Inu remains uncertain. The broader cryptocurrency market correction and the presence of a significant sell wall create obstacles to immediate price growth.
However, Marks and other prominent figures are bullish on the meme coin. SHIB has shown resilience in the past, and this prediction signifies what could be a major turning point for the meme coin.
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