Analysts are closely watching Shiba Inu (SHIB) as it fell over 3% in the past week and more than 4% in the last two weeks. However, despite this bearish trend, some experts predict a potential trend reversal.
Technical Analysis Points to Breakout Potential
Jonathan Carter, a chartist on the X platform, highlighted that SHIB is trading within a descending channel since early April. This pattern suggests lower highs and lower lows, indicating a bearish trend. However, Carter notes that SHIB is nearing a strong support zone around $0.0000100, which has historically provided a bounce-back in price.
Carter suggests that a breakout above the 50-day moving average (MA 50) and the descending resistance line could trigger a significant rally toward the $0.0000380 target. This surge would represent an approximate increase of 120.29% from SHIB’s current trading price of $0.00001725.
Technical Indicators Hint at Bullish Reversal
Supporting Carter’s analysis, data from TradingView shows that SHIB is near the lower Bollinger Band, indicating it might be in an oversold condition. Prices typically revert to the mean, suggesting potential upward movement. Furthermore, the MACD histogram shows a reduction in bearish momentum, and the MACD line is approaching the signal line from below, hinting at a potential bullish crossover.
Stable Accumulation/Distribution Suggests Investor Confidence
The Accumulation/Distribution (Acc/Dist) line has remained stable, suggesting that despite the price decline, there has not been significant selling pressure. This stability indicates that investors are holding onto their SHIB tokens, anticipating a price recovery.
Increasing Number of Holders Reflects Long-term Confidence
Santiment data reveals a clear increase in the number of Shiba Inu holders over time, peaking in late April. Despite price fluctuations, the number of holders has remained relatively stable, indicating continued interest and belief in SHIB by the investor community. This stability suggests a strong base of long-term investors, which is positive for SHIB’s potential, even during periods of price decline.
Meme Coins Offer Potential for Life-changing Gains
Other analysts have observed similar bullish indicators. Aaron Arnold, founder of the Altcoin Daily channel, highlighted SHIB among meme coins worth investing in during this bull market. Arnold, alongside meme coin expert Rodney, discussed the significance of meme coins, emphasizing their potential for life-changing gains. Rodney argued that meme coins, despite being speculative, can achieve substantial market caps, as seen with Dogecoin and SHIB in 2021. He noted the current trend of focusing on community, narratives, and content, making meme coins more sustainable and attractive.
Read Also: Shiba Inu Maintains Momentum: 27.66% Weekly Burn Rate Increase Post-WazirX Hack
