An analysis by a market expert has described a potential scenario in which Shiba Inu (SHIB) could reach a projected value of $0.0005. This prediction is supported by the completion of a fifth Elliott Wave on the weekly chart. However, SHIB has faced obstacles in its recovery as the broader market loses momentum. After experiencing a drop to a low of $0.00002057 on May 1, SHIB saw a 28% rally to reach a high of $0.00002632 on May 4 before encountering resistance. This resistance was also felt by other leading cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), which have also experienced a loss of momentum. Despite this setback, SHIB has managed to hold above the Fibonacci 0.382 level at $0.00002311, awaiting a resurgence in market momentum.
In light of the current market conditions, market analyst Big Mike has proposed an ambitious price target for when Shiba Inu eventually takes off. Referring to data from the weekly chart, the analyst noted that SHIB has been trading within a complex network of multiple Elliott Wave structures since last year. In the largest wave structure, SHIB completed the first wave by reaching a high of $0.00001135 in early August 2023. The second wave then brought SHIB down to a low of $0.0000661 in October 2023, representing a correction of over 41.7%. Currently, SHIB is in the third wave, which Big Mike believes will help recover the losses from the second wave. Wave 3 could also push SHIB to surpass this year’s peak of $0.000045 and the all-time high of $0.00008845, potentially reaching a rally of $0.0005059. This would signify a remarkable 1,941% increase from the current price of $0.00002478.
However, the prevailing bearish sentiment in the market could pose challenges to a significant SHIB rally. Since April 22, investors have deposited a net value of $11.359 million in SHIB to exchanges amidst the market turbulence. Increased deposits to exchanges typically intensify selling pressure, creating an obstacle to upward momentum. Data from Santiment confirms this selling pressure, as addresses holding between 1 million and 1 billion SHIB continue to sell off or distribute their holdings. The largest group of sellers consists of wallets holding between 100 million and 1 billion tokens, which have sold off 1.98 trillion SHIB since February 24, leaving their cumulative balance at 19.73 trillion.
Furthermore, while SHIB’s Open Interest (OI) has increased by 2.57% to $65.19 million in the last 24 hours, its long/short ratio has steadily declined and currently stands at 0.8443. This indicates a rise in short positions as traders anticipate a potential price drop. Despite the prevailing bearish sentiment, SHIB is experiencing a gradual increase in social dominance, a trend that often precedes a forthcoming price surge. SHIB’s social dominance has risen from a low of 0.6595 on April 30 to the current value of 1.14%. As of press time, Shiba Inu is trading at $0.00002478, representing a 1.64% increase in the last 24 hours.
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