Shiba Inu (SHIB) has experienced significant downward pressure recently, with its price dropping by 29% over the past month, in line with broader market trends. The meme coin’s decline coincides with a noticeable decrease in whale activity, which has dropped by more than 80% over the last three months, signaling reduced confidence from major investors. As of now, SHIB is priced at $0.00001476, with a market capitalization of $8.7 billion, although the token has seen a further 9% decline in the last 24 hours.
Despite these bearish signals, analysts are cautiously optimistic about Shiba Inu’s potential for a reversal. They highlight the formation of an Inverse Head and Shoulders pattern, which could indicate a potential 400% rally if key support levels hold. This would push SHIB’s price to as high as $0.000081, recovering from the current oversold conditions. However, experts urge caution given the unpredictable nature of the meme coin market.
The decline in large transactions of over 1,000 SHIB has added to the uncertainty, reflecting a lack of trust among the token’s larger investors. At the same time, positive developments, such as a sharp increase in burn activity—up 120.3% in the past week—have sparked renewed optimism. A higher burn rate reduces the token’s supply, which, in turn, could fuel demand and potentially lead to a breakout.
From a technical analysis perspective, SHIB’s chart shows growing volatility, with the Bollinger Bands widening and the price currently sitting below the middle band, a bearish signal. The MACD indicator remains negative, confirming the ongoing downtrend. However, the lower Bollinger Band may provide support for potential recovery if buying momentum increases.
At this crucial juncture, Shiba Inu’s price faces a pivotal test: holding above the critical $0.000011 support level. If SHIB fails to defend this support, it may face further declines. On the other hand, if the bulls can step in and maintain these levels, a rally could be on the horizon, marking a possible turnaround for the popular meme coin.
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