Shiba Inu has recently entered a buy zone, according to market analysts, who predict that a breakout of a prevailing flag pattern could lead to a rally to $0.000085. These predictions come at a time when SHIB is experiencing one of its largest short-term declines in the market.
The current market collapse has resulted in Shiba Inu losing all its gains from May, with a decline of 42.41% from its peak of $0.00002945. Interestingly, experienced investors see periods of market downtrends as opportunities to accumulate assets.
Market analyst SHIB Knight shares this sentiment and has highlighted that SHIB has entered the buy zone on the weekly timeframe. This zone corresponds to the midpoint of the $0.000017 territory, which has been identified as a significant resistance area for SHIB. With Shiba Inu currently trading below the $0.000017 threshold, investors looking to increase their holdings have the opportunity to buy the token at discounted levels. The current price of SHIB is $0.00001696, and market participants are hoping for a recovery to the $0.000017 level to protect against further declines.
SHIB Knight emphasizes that Shiba Inu must defend this area in order to have a chance at an uptrend. If the bears manage to push the price even lower, the next support level for SHIB is at the lower end of the $0.000016 region, specifically Fib. 0 at $0.00001626.
While price targets for a rebound were not provided by SHIB Knight, The Crypto Basic previously identified support at $0.000024. In a separate analysis, TradingView analyst Esmaei Baiki has set an ambitious target range for Shiba Inu. Baiki suggests that SHIB is currently trading within a bull flag on the daily timeframe, with the flag forming during the ongoing retracement from the peak of $0.000045. Baiki expects SHIB to break above the upper trendline of the flag, leading to a 400% increase and a potential range of $0.00008 to $0.000085.
Data from IntoTheBlock reveals that Shiba Inu has a higher bid volume (28.78 billion tokens) compared to the ask volume (27.94 billion tokens) across 11 exchanges, including Binance, Coinbase, and KuCoin. This indicates more buying interest than selling interest and suggests the possibility of a price reversal or stabilization, even during the downtrend.
Furthermore, recent data shows that bulls acquired 1.64 trillion SHIB tokens worth nearly $28 million, while bears sold about 1.6 trillion tokens, indicating higher demand than supply. With Shiba Inu currently trading at $0.00001696, these metrics could increase the likelihood of a rebound.
Please note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions 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.