Shiba Inu (SHIB), the meme-inspired cryptocurrency, is looking to bounce back after a recent market downturn. The token, once valued at $0.00002633 on June 5th, has dipped to $0.00001820, marking a significant 31% drop in just two weeks. This slump aligns with a broader market correction attributed to “altcoin dispersion” by analyst Mike Deutscher, wiping out a combined $137 billion from the top 125 altcoins.
Despite the losses, some technical indicators suggest a potential upswing for SHIB. The token’s Relative Strength Index (RSI) has plummeted to a historical low of 15, signifying it’s “oversold” according to CryptoQuant data. This historically low RSI suggests the selling pressure might be subsiding and SHIB could be undervalued, potentially presenting a buying opportunity for investors seeking a rebound.
Investor Accumulation Hints at Optimism
Interestingly, market data from Santiment reveals both small investors (holding 100,000 – 1 million SHIB) and large whales (holding at least 1 trillion SHIB) have been accumulating tokens this month. Small investors have collectively added 2 billion SHIB, while whales have scooped up nearly 500 billion, hinting at shared optimism for a price recovery.
Analyst Predictions: A Price Target of $0.0001?
Market analysts seem to echo this sentiment. Analyst Sam_TCR, in a previous TradingView analysis, predicted a resistance point at $0.00002320 and a potential rally to $0.0001 if breached. Another analyst, Michael, aligns with this projection.
However, before reaching the coveted $0.0001 mark, SHIB needs to overcome a crucial hurdle – the psychological resistance level of $0.00002. Successfully surpassing this level could act as a springboard for a significant upswing, aligning with the analyst predictions.
Cautious Optimism Warranted
While technical indicators and analyst projections paint a potentially bullish picture for SHIB, the cryptocurrency market remains inherently volatile. Investors should conduct thorough research, understand their risk tolerance, and approach any investment with a healthy dose of caution.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.