Maximilian, a cryptocurrency market analyst, has identified several factors that could potentially drive Shiba Inu towards the $0.000031 mark despite the recent price crash.
Yesterday, the broader cryptocurrency market experienced one of the most significant declines of the year, with most cryptocurrencies seeing double-digit losses within a span of 24 hours. Amidst this downward trend, Shiba Inu recorded a substantial drop in price, falling by 11.6% over the past day.
However, market analysts view this drop as a mere retest of Shiba Inu’s previous lows, which could potentially lead to a significant price surge. In his latest analysis on TradingView, Maximilian revealed that SHIB bulls have demonstrated resilience by holding onto their tokens despite the persistent downturn. This is a positive factor that indicates a potential recovery.
This trend was previously highlighted by The Crypto Basic, which reported that most Shiba Inu shark and whale addresses have retained their holdings. Maximilian supported this claim by referring to data from a chart, indicating that SHIB has maintained stability within a rising channel on the 4-hour chart.
At the time of the report, Shiba Inu had dropped to $0.00002783. However, since then, the bears have triggered even steeper declines amidst the broader market collapse. As a result, SHIB has now fallen below the $0.000027, $0.000026, and $0.000025 price supports, currently trading at $0.00002417.
With this drop, Shiba Inu has slipped below the lower trendline of the rising channel and breached the pivotal support at $0.000027. Nevertheless, SHIB is expected to capitalize on the imminent market recovery to regain its position within the channel.
Another factor contributing to Maximilian’s optimism is the sustained increase in trading volume, which confirms ongoing interest in Shiba Inu from market participants. Notably, SHIB’s trade volume has surged by 164% over the past 24 hours, reaching $1.2 billion, accounting for 8.41% of its market capitalization.
Additionally, data from Coinglass reveals that Shiba Inu’s derivatives volume has skyrocketed by 201% to $369.97 million within 24 hours. This increased volume persists despite a 21.79% drop in Open Interest to $66 million, as traders exit their positions due to the market crash and surge in liquidations.
Apart from the rise in volume, Maximilian also confirmed that Shiba Inu’s overall uptrend has continued to gain momentum in terms of market adjustment. He emphasized the significance of SHIB defending the recently breached channel support at $0.000027.
Now that the bears have taken control of this territory, SHIB aims to reclaim it. Maximilian anticipates that the price will stabilize once it reenters this channel, with a bounce off the support potentially propelling it towards the upper trendline of the channel. This could result in Shiba Inu reaching $0.00003195.
Meanwhile, SHIB has experienced a 21% decline this month. Another analyst, MBM Crypto, observed yesterday that Shiba Inu has formed a bullish pennant amidst its current price movements. The recent collapse has brought SHIB to the support range of $0.000024 to $0.000028. MBM Crypto sets a target of $0.0000348 once SHIB breaks above the pennant.
Disclaimer: This content is for informational purposes only and should not be considered as financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.