Shiba Inu, a popular cryptocurrency, is aiming to break through a multi-month descending channel’s upper trendline at $0.00002444 and reach $0.00002954. However, the recent volatility in the market has negatively impacted Bitcoin’s value, causing a 14.88% decrease last month and putting selling pressure on altcoins. Shiba Inu also experienced a significant price decline of 27.16% in April but is now looking to recover those losses.
According to market analyst Ali Martinez, Shiba Inu has been trading below the upper boundary of a descending parallel channel since March on the 4-hour timeline. All previous attempts to breach this upper boundary have been unsuccessful.
Despite this, Shiba Inu has recently shown signs of recovery, with the cryptocurrency flirting with the upper boundary once again. Yesterday, SHIB closed with a 4.71% gain, marking its highest intraday gain since May 3. Over the past 24 hours, it has recorded an 8.20% increase, making it one of the top gainers among the top 100 assets.
Martinez’s analysis suggests that Shiba Inu will face significant resistance at the upper boundary as the recovery continues. Currently, this resistance level is at the $0.00002444 price, which aligns with the Fibonacci 0.382 level on the daily timeframe.
Data from IntoTheBlock confirms that Shiba Inu faces minimal resistance below the $0.0000244 price area, with only 21,660 addresses holding 7.58 trillion SHIB at an average price of $0.000024 presenting a potential hurdle.
If Shiba Inu manages to breach this area, it will surpass the upper boundary of the descending channel, which could lead to further gains. Martinez believes that once Shiba Inu breaks above the $0.00002444 territory, it has the potential to push toward $0.00002954.
However, Shiba Inu must navigate a market that has been dominated by bears in recent days. Volatility has dropped to 75.55%, down from the yearly high of 232.58% on March 4. Data also shows that in the past three days, 44 whale addresses have sold over 1% of the 24-hour volume, while 41 whale addresses have purchased over 1% of the 24-hour trade volume, indicating bearish sentiment.
For Shiba Inu to sustain its upward momentum, it needs to see a resurgence of buyers. Despite recording a significant increase in derivatives volume, the long/short ratio indicates a prevalence of short positions, suggesting that market participants are betting on a correction.
It is important to note that this content is informational and should not be considered financial advice. The opinions expressed in this article are the author’s own and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic holds no responsibility for any financial losses incurred.