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Shiba Inu Now Signals Potential Recovery After Extended Downtrend

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Shiba Inu now signals potential recovery after extended downtrend after several days of anticipation, having indicated a potential buying opportunity on its daily chart.

Hinting that the ongoing downtrend may be nearing its conclusion.

This development comes after a prolonged period of decline that has lasted nearly three weeks.

Downtrend Overview

Shiba Inu has struggled to regain the $0.00003 price zone since it fell below this threshold on December 9.

The persistent downtrend has raised concerns among investors, but recent movements suggest a shift may be on the horizon.

Buy Signal Emerges

On December 22, Shiba Inu’s price retested the critical support level of $0.000020.

Following this, the meme-inspired cryptocurrency made a slight recovery, climbing back to approximately $0.000023.

Market analyst Ali Martinez has noted that this uptick could signify the end of the current correction, bolstered by the recent buy signal from the TD Sequential indicator.

Understanding the TD Sequential Indicator

The TD Sequential is a valuable tool for traders, as it helps identify points of trend exhaustion and potential reversals.

The recent buy signal for Shiba Inu suggests that the downtrend may be losing momentum, and Martinez has projected a possible recovery towards the $0.000026 price region.

It’s worth noting that SHIB last reached this level on December 18, right before experiencing an 8.62% drop.

Should Shiba Inu successfully reclaim the $0.000026 mark, Martinez anticipates that it could move towards $0.000029.

Achieving this price could provide the bullish momentum necessary for SHIB to aim for the psychologically significant $0.00003 level.

The Context of Recent Price Drops

The price of SHIB fell sharply after hitting a local resistance level of $0.00003343 on December 8.

This resistance was met with significant selling pressure, resulting in a staggering 15.3% intraday decline—the largest daily loss for SHIB since the Terra crisis in May 2022.

The TD Sequential also provided a sell signal during this peak, underscoring the intensity of the reversal.

This downward trend was further exacerbated by hawkish comments from Jerome Powell, the Chair of the Federal Reserve, which added to the broader market’s selling pressure.

Current Price Analysis and Holder Profitability

Despite the recent minor recovery, Shiba Inu’s price has declined by 10% over the past week, currently trading at $0.000023.

Recent data from IntoTheBlock reveals that approximately 785,900 addresses, or 55.32% of all holders, remain in profit at this price point.

However, around 37.12% of holders—roughly 527,330 addresses—purchased SHIB at prices above the current level and are now facing losses.

Additionally, there are 107,380 addresses at breakeven, representing about 7.36% of total holders.

Anticipated Resistance on the Path to Recovery

As Shiba Inu attempts to regain the $0.00003 level, it is expected to encounter significant resistance.

If it can surpass the $0.000025 mark, there is a substantial sell wall between $0.000025 and $0.00003.

Within this range, about 165,580 wallets hold approximately 62.5 trillion SHIB, creating a formidable supply barrier.

Nevertheless, the ongoing trend of whale accumulation could provide the necessary support to foster bullish momentum, potentially reversing the current downtrend.

As market dynamics continue to evolve, Shiba Inu investors will be closely monitoring these price levels for any signs of sustained recovery.

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Also Read: Shiba Inu Sees A Surge In Popularity Now Welcoming 7,548 New Wallets


The post Shiba Inu Now Signals Potential Recovery After Extended Downtrend appeared first on Daily Market News 🗞️.


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