As a seasoned researcher with over two decades of market analysis under my belt, I’ve seen trends come and go, bubbles burst, and recoveries unfold. When it comes to Shiba Inu (SHIB), the recent predictions of a surge to $0.001 have certainly piqued my interest, but they also raise a few red flags.
As a crypto investor, I’ve noticed that Shiba Inu‘s price has been relatively stable over the past few months following the significant drop on August 5. However, there was a brief surge around August 20, which unfortunately didn’t last long and the asset returned to its usual range. Many crypto analysts predict that SHIB might soon soar up to $0.001, but I can’t help but wonder if this is indeed true. The technical analysis might be painting a different picture.
Why Experts Think Shiba Inu Price is About to Surge
For the last week, two analysts have suggested that the price of Shiba Inu might climb to $0.01. Krao presented a graph indicating the asset is presently in a holding pattern, and he anticipates that once this phase ends, SHIB could swiftly drop two zeros, meaning it could potentially reach $0.01.
Analyst LuckSide, like others, anticipates a potential rise in the price of SHIB to $0.001, as all indicators seem to be pointing towards an uptrend. Key factors supporting this optimistic forecast include large investors acquiring approximately 3 trillion SHIB within the last two days and withdrawing a significant $4 million worth of SHIB from exchanges.
Will SHIB Price Rise Anytime Soon?
Although Krao and LuckSide provide valid points in their assessment, there’s a strong possibility that Shiba Inu prices won’t increase immediately. Initially, whales buying large quantities is generally seen as a positive signal, but it doesn’t always lead to an immediate price hike, especially when technical analysis suggests a potential downturn may be imminent.
As a researcher, I’ve noticed that Krao’s analysis focuses on a monthly timescale, suggesting the market surge might occur sooner rather than later. However, it’s crucial to note that such short timeframes could potentially create a misleading impression of an immediate sell-off. Instead, a broader perspective might provide a more accurate understanding of the market trends.
Based on the Shiba Inu’s 4-hour price chart, there seems to be a different narrative unfolding. The recent price movements have created a head and shoulders pattern, which is typically bearish and suggests a potential reversal. This pattern has been forming for nearly a month. Following the steep drop in price on August 5, the broader crypto market experienced an upward trend as investors seized the opportunity to buy at lower prices. However, this head and shoulders formation indicates that the market downtrend may not have run its course yet.
At present, the Shiba Inu (SHIB) token’s floor is at approximately $0.00001280. If this level is breached, it might result in a 18% decrease, taking the price down to around $0.00001000. However, if SHIB manages to rebound from its current support, it may surge towards the upper limit ($0.00001440) before attempting to break out further.
Tomorrow, the Federal Open Market Committee (FOMC) convenes to determine if they should lower U.S. interest rates. Such a move could negatively impact the crypto market, including the price of SHIB. Investors are anticipating a reduction of either 25 or 50 basis points, but there remains a lot of ambiguity about the final decision.
If Fed Chair Jerome Powell fails to cut rates, it may signal bearish sentiment, which could be the final nudge that pushes Shiba Inu below $0.00001280.
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2024-09-17 07:58