Shiba Inu Price: Temporary Setback on the Horizon?
Shiba Inu, widely recognized as the second largest meme coin, has found itself amidst a correction trend that began in late May, a downturn that saw the price tumbling from a high of $0.0000294. This significant market adjustment has resulted in a more than 41% drop in its trading price to $0.0000172, alongside a dwindling market cap settling at $10.12 Billion.
Despite this downward trend, a closer examination of the daily chart reveals a glimmer of hope for Shiba Inu enthusiasts. The price movement patterns suggest the emergence of a bullish continuation pattern commonly referred to as the Flag. This pattern often surfaces during an uptrend, signaling a potential rallying point for buyers to rejuvenate the bullish momentum.
In a recent analysis conducted by the crypto analytics firm Sentiment, Shiba Inu, alongside Uniswap, was identified as undervalued when compared to their counterparts such as Toncoin, Bitcoin, and Ethereum - all of which appear to be overvalued. This assessment was made using the MVRV Z-Score, a tool designed to identify possible overbought or underbought conditions by comparing the market value to realized value.
This valuation suggests that Shiba Inu may be well-positioned for a notable price appreciation, aiming to recapture its previous highs. Should the asset manage a reversal from the lower trendline of its current pattern, we could witness a surge of 28-30% before it encounters the key resistance posed by the flag pattern. However, until it breaches this overhead resistance, Shiba Inu could remain locked within its current correction trajectory.
A breakout from the flag pattern would be a clear indicator of the prevailing rally's resumption. Should the buying pressure persist, it’s feasible that Shiba Inu could aim for target prices of $0.00003, and potentially stretch towards $0.000045.
Technical Indicators to Watch
-EMAs: The position of the 20-day Exponential Moving Average, hovering near $0.0000183, indicates an increasing pressure at this resistance level, possibly affecting Shiba Inu's ability to soar.
-ADX: The slope of the Average Directional Index suggests a diminishing bear momentum, a hopeful sign for investors after a period of extended decline.
As the crypto market continues to evolve, the valuation and performance of digital currencies like Shiba Inu remain under the microscope. While the current market conditions present a mixed bag of challenges and opportunities, understanding the underlying factors and technical indicators can provide valuable insights for potential investors. With Shiba Inu holding a unique position in the cryptocurrency space, all eyes will be watching to see if this meme coin can defy the odds and chart its own course to recovery and beyond.
