Can SHIB Price Reclaim $0.00001 Mark?
A rising trendline continues to show demand pressure for SHIB price during market dips. If there is a bullish breakout from the overhead trendline, it will trigger a directional rally. The 24-hour trading volume on Shiba Inu is currently at $186 million with a 6.6% loss.
The daily time frame chart for Shiba Inu shows that the price has been following two converging trendlines. The first one has acted as a support trendline for about three weeks, providing dynamic support during market corrections. However, there is also a downsloping trendline that is currently leading the correction trend and preventing higher recovery.
Recent on-chain data reveals that a newly created whale wallet has acquired a significant amount of SHIB tokens. This accumulation occurred after a massive token burn by the SHIB community. Over the last month, four major investors have collectively purchased billions of SHIB tokens from Binance.
This heavy accumulation despite a correction phase indicates a higher potential for the SHIB price to rebound higher.
On January 9th, the SHIB price rebounded from the lower trendline, resulting in an 8.5% increase. If the price breaks out from the overhead resistance trendline, it would confirm a recovery and potentially lead to a post-breakout rally of 16%.
Key Support Level to Watch
While the current market outlook for Shiba Inu price seems bullish, there is uncertainty due to rumors of the spot Bitcoin ETF being a sell-the-news event. As long as the lower trendline remains intact, the memecoin may continue its recovery. However, a breakdown below the trendline could accelerate selling pressure and trigger a new correction in SHIB price.
- Average Directional Index: The high-value ADX slope indicates that SHIB price may need a prolonged correction to recover from exhausted bullish momentum.
- Bollinger Band: The flattish boundaries of the Bollinger Band indicator suggest a lack of momentum in buying and selling pressure.
Hot Take: Shiba Inu Price Prediction
Despite recent downward movement, Shiba Inu has shown potential for a bullish reversal. The acquisition of a significant amount of SHIB tokens by whale investors suggests confidence in the coin’s future. If the price breaks out from the overhead resistance trendline, it could lead to a rally towards $0.000018. However, market uncertainty surrounding the spot Bitcoin ETF rumor could impact SHIB price. Monitoring key support levels and indicators like the Average Directional Index and Bollinger Bands can provide insights into potential price movements.
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