Shiba Inu, a meme-inspired cryptocurrency that rode the coattails of Dogecoin’s success, has experienced a dramatic 94% drop from its October 2021 peak of $0.000085. From June 10, 2023, it made a notable decrease to $0.0000055, which is the same level hit before it started its trajectory to its all-time high.
This level closely resembles the price range preceding its significant upswing in August and September 2021, serving as a reliable support zone. Despite a promising 100% recovery from June to mid-August this year, the price has subsequently retreated to $0.0000070.
Currently, some analysts are anticipating another potential surge.
Ali Martinez, a renowned crypto analyst, has highlighted a potential bullish trajectory for Shiba Inu (SHIB) using the Tom Demark (TD) Sequential indicator.
Sharing his observations with his vast audience on X, Martinez emphasized that the TD Sequential, a favored tool for traders to pinpoint potential trend shifts, suggests a bullish turn for SHIB on its weekly chart.
In the past, SHIB has shown a positive response to this indicator, yielding impressive surges of 118% and 71% following previous bullish signals. This new analysis may rekindle optimism and excitement among SHIB enthusiasts and investors.
Should this hold true, the question arises: How high could SHIB potentially climb in the upcoming upswing?
While the low on June 10 could potentially serve as a support level for SHIB, it’s not an absolute certainty. A more plausible scenario suggests that the price surge from June to mid-August might represent the fifth corrective wave within the broader WXYXZ pattern. In such a case, it could imply a continuation of the bear market. However, there are now some encouraging signs on the horizon.
Starting from October 21, where the price concluded its previous downward movement at $0.0000066, there has been a 24% increase, bringing it to the current level of $0.0000080.
The recent downtrend retraced to the 0.618 Fibonacci level, a common occurrence in the second wave of a five-wave impulse. For SHIB to initiate a new bullish cycle, it is crucial to maintain its position above this level, which it is currently striving to do.
As it rebounds from this level, the likelihood of a bullish scenario gains strength. However, should it stumble, SHIB could face an extended bearish phase, potentially approaching a new record low, nearing the $0.0000040 mark.
Conversely, a robust upward surge has the potential to breach the descending resistance, targeting a goal of $0.000018, representing a further 125% increase from its current value of $0.0000080.
Considering its ongoing upward movement and substantial recovery from its recent low, a bullish scenario is in progress. To shift entirely into a bullish mode, a breakout above the descending range at $0.0000092 would be a significant milestone to watch for.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.