In the wake of recent market turbulence, Shiba Inu (SHIB) faces a critical juncture in its price action. After a significant downturn in April, analysts are eyeing a potential rebound for the popular altcoin.
Market analyst Ali Martinez highlights SHIB’s struggle to breach the upper boundary of a descending parallel channel since March. Despite recent recovery attempts, resistance persists, with SHIB trading below key levels.
Recent Developments
In a promising turn, SHIB closed with a 4.71% gain, signaling renewed momentum. Currently, it boasts an 8.20% surge over the last 24 hours, positioning it as one of the top gainers in the market.
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Martinez identifies a major resistance level at $0.00002444, corresponding to the Fibonacci 0.382 level on the daily timeframe. Breaking through this barrier is crucial for SHIB’s upward trajectory.
Data from IntoTheBlock (ITB) suggests minimal resistance below $0.0000244, with a notable supply wall consisting of 21,660 addresses holding 7.58 trillion SHIB. Overcoming this hurdle could propel SHIB above the descending channel’s upper boundary.
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Potential Upside
Martinez asserts that a successful breach of $0.00002444 could pave the way for SHIB to target $0.00002954. This scenario hinges on sustained buying pressure and a shift in market sentiment.
Despite recent volatility declines, SHIB faces headwinds from bearish sentiment. Whale activity indicates a tug-of-war between buyers and sellers, with the need for a resurgence in buying interest to sustain upward momentum.
While derivatives volume has surged, the long/short ratio suggests a prevalence of short positions. Market participants remain cautious, anticipating a potential correction. Shiba Inu’s journey to recovery hinges on its ability to overcome key resistance levels and attract buying interest. With potential upside targets in sight, the coming days will be crucial for SHIB’s price action.
