The recent cryptocurrency market correction has impacted numerous altcoins, including Shiba Inu (SHIB). The token’s price has slumped from a high of $0.00002633 on June 5 to $0.00001817 at press time, representing a significant 31% decline in just two weeks.
This drop led to SHIB’s market capitalization dropping to $10 billion, reflecting a loss of $4.21 billion during the same period.
However, some analysts see this downturn as a potential buying opportunity. Technical indicators suggest that SHIB may be oversold. The Shiba Inu Relative Strength Index (RSI), a metric used to gauge the momentum of price movements, has dipped to a historical low of 15.
According to data from CryptoQuant, such a low RSI value typically indicates that an asset is undervalued and a price reversal or rebound may be imminent.
This sentiment is bolstered by on-chain data from Santiment, which reveals an increased accumulation of SHIB by small investors and whales. Investors holding between 100,000 and 1 million tokens have acquired 2 billion SHIB this month, while large investors holding at least 1 trillion SHIB have accumulated nearly 500 billion tokens. This suggests a growing confidence among certain market participants in a potential Shiba Inu price recovery.
Market strategist Sam_TCR’s prior analysis on TradingView strengthens the case for a rebound. While conducted before the recent price drop, his prediction of a resistance point at $0.00002320 remains relevant. If SHIB can surpass this level, the analyst anticipates a further hurdle at $0.00002550.
Breaching these resistances could pave the way for a surge towards the much-anticipated $0.0001 mark. A report from Times Tabloid in March, reveals another analyst, Michael, who shares this bullish outlook.
It’s important to acknowledge that challenges remain on SHIB’s path to $0.0001. The token needs to overcome the psychological resistance at $0.00002 before it can be utilized as a springboard for a significant price increase. The overall health of the cryptocurrency market will also play a crucial role in influencing SHIB’s future trajectory.
While the recent price decline has caused concern among some investors, technical indicators and on-chain data suggest that Shiba Inu may be oversold. Analyst predictions and increased accumulation by certain investor groups point towards a potential recovery. However, key resistance levels need to be broken.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
