Shiba Inu: Stalled Recovery or Bullish Breakout?
Shiba Inu’s (SHIB) recent recovery attempt has hit a snag as the broader cryptocurrency market loses steam. After briefly rallying 28% to $0.00002632 on May 4th, SHIB encountered resistance, mirroring a slowdown across leading cryptos like Bitcoin and Ethereum.
Despite the setback, SHIB remains above the Fibonacci 0.382 support level at $0.00002311, indicating the potential for a renewed uptrend when market momentum picks up.
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Analyst Projects Ambitious Target
Amidst the current market uncertainty, analyst Big Mike offers a bullish prediction for SHIB’s eventual breakout. Based on a weekly chart analysis, Big Mike identifies a complex web of Elliott Wave structures guiding SHIB’s price action since 2023.
$SHIB can break through the level marked off and confirm my higher targets pic.twitter.com/LPkLi40ZWW
— BigMike7335 (@Michael_EWpro) May 4, 2024
The analyst believes SHIB is currently within the third wave of the largest Elliott Wave structure (marked in white). This wave is expected to propel SHIB beyond its 2023 peak of $0.000045 and even its all-time high of $0.00008845. Big Mike’s most optimistic target sits at a staggering $0.0005059, representing a potential 1,941% increase from the current price.
Bearish Sentiment Presents Challenges
However, current market conditions pose significant challenges to a substantial SHIB rally. Investor sentiment leans heavily bearish, with a net value of $11.359 million deposited in SHIB to exchanges since April 22nd, according to Coinglass data. This increased exchange inflow typically indicates selling pressure, potentially hindering upward momentum.
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Santiment data further confirms this bearishness. Addresses holding between 1 million and 1 billion SHIB have been steadily selling off their holdings, with the biggest sellers (holding 100 million to 1 billion tokens) offloading 1.98 trillion SHIB since February.
Furthermore, while SHIB’s Open Interest (OI) has risen slightly in the past 24 hours, its long/short ratio has dipped to 0.8443, signifying an increase in short positions – a sign that traders anticipate a price drop.
A Glimmer of Hope?
Despite the prevailing bearishness, a potential silver lining exists. SHIB’s social dominance metric, which often precedes price increases, has shown a gradual uptick. From a low of 0.6595 on April 30th, SHIB’s social dominance has climbed to 1.14% at press time.
As of now, SHIB trades at $0.00002478, reflecting a modest 1.64% gain in the last 24 hours. Whether this uptick translates into a sustained rally hinges on a broader market upswing and a shift in investor sentiment.
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Cryptolifedigital is a cryptocurrency blogger and analyst known for providing insightful analysis and commentary on the ever-changing digital currency landscape. With a keen eye for market trends and a deep understanding of blockchain technology, Cryptolifedigital helps readers navigate the complexities of the crypto world, making informed investment decisions. Whether you’re a seasoned investor or just starting out, Cryptolifedigital’s analysis offers valuable insights into the world of cryptocurrency.
