Shiba Inu (SHIB) is currently looking to make a recovery after falling into the oversold region. A market analyst predicts that it will soon see a surge to $0.0001.
The recent market downturn had a significant impact on Shiba Inu, with The Crypto Basic confirming that the turbulence resulted in a $137 billion loss in the combined market cap of the top 125 altcoins in just two weeks. Shiba Inu itself lost $4.21 billion in valuation during this period, dropping its market cap to $10 billion. This represents a massive 31% collapse in just two weeks, with the price falling from a high of $0.00002633 on June 5 to the current value of $0.00001820.
Despite the losses, there are some technical indicators suggesting a potential recovery. The Shiba Inu Relative Strength Index (RSI) has reached a historical low of 15, indicating that SHIB is significantly oversold. This suggests that the selling pressure is high and the coin may be undervalued. Market analysts interpret this as a potential buying opportunity, expecting a price reversal or rebound in the near future.
As Shiba Inu aims to recover from its recent lows, investors are increasing their holdings in anticipation. Data from Santiment shows that small investors holding between 100,000 and 1 million tokens have acquired 2 billion SHIB this month, while large whales holding at least 1 trillion SHIB have accumulated nearly 500 billion tokens.
Market analyst Sam_TCR had previously projected this recovery in a TradingView analysis. At the time of the analysis, Shiba Inu was trading at $0.000022. With the coin now below $0.00002, the analyst’s projection of a resistance point at $0.00002320 remains valid. If Shiba Inu can surpass this level, the next resistance would be at $0.00002550. Breaking through this roadblock could pave the way for a rally to the coveted $0.0001 price. Another analyst, Michael, also expects a rally to the $0.0001 level.
However, at its current price of $0.00001820, SHIB faces strong resistance on its path to $0.0001. The coin must first surpass the psychological level at $0.00002 before it can gain momentum for a significant increase.
Please note that this article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely the author’s and do not reflect those of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.