An analyst notes SHIB is now trapped at key support level within the bull market, but despite its current fluctuations, the coin remains anchored around the critical point.
This indicates a potential for future recovery if it can break free.
In the current climate of fluctuating cryptocurrency prices, Shiba Inu (SHIB) has found itself grappling with challenges that reflect broader market trends.
However, a seasoned market analyst is asserting that this popular meme coin has not entirely lost its bullish trajectory.
Market Context: Navigating Bearish Sentiments
Recent market activity indicates that Shiba Inu is mirroring a wider correction, characterized by prevailing bearish sentiments.
As the second-largest meme coin by market capitalization, SHIB has struggled to revisit its yearly high of $0.00004567, with resistance at $0.00003343 proving to be a significant barrier.
Over the past week, Shiba Inu has experienced a correction exceeding 11%, dipping to a multi-week low of $0.00001853.
Despite these price challenges, an influential analyst believes that Shiba Inu retains potential for a bullish resurgence.
Analyst Insights: Shiba Inu’s Resilience
In a commentary released on Boxing Day, the well-regarded analyst known as Cantonese Cat emphasized that Shiba Inu is still in a relatively strong position.
His analysis suggests that the meme coin has not completely lost its bullish momentum and has the capacity to rebound from its recent dip.
Cantonese Cat pointed out that Shiba Inu is currently hovering around the 0.5 Fibonacci extension level at $0.00002661.
He noted that while the token is struggling to recover from its recent downturn, it finds support in the $0.000022 zone, which has become a significant floor for SHIB’s price.
Accompanying his analysis, a chart illustrates the key support regions for Shiba Inu should the bearish trend continue.
It also delineates potential resistance levels if the coin manages to regain its bullish momentum.
Future Projections: Support and Resistance Levels
According to Cantonese Cat, if the bearish momentum persists, the first major support level for Shiba Inu is identified at the 0.382 Fibonacci extension, approximately $0.000016434.
This level represents a critical threshold, where bulls may find additional minor support just above this point.
However, reaching this support would require a significant drop of nearly 25% from the current market price.
Conversely, a bullish scenario could propel Shiba Inu to new heights, with the 0.618 Fibonacci level at $0.000031247 identified as the first major resistance.
An earlier analysis from Rose Premium indicated that a bullish surge could see SHIB reaching $0.00003082, followed by a potential rise to $0.00003511.
In agreement with these projections, another analyst, Asteks, speculated that Shiba Inu could target a price of $0.0000323, citing an imminent breakout from a bullish cup and handle pattern.
Current Market Status
At present, Shiba Inu is trading at $0.0000218, reflecting a decline of 2.6% over the past 24 hours.
As traders and investors monitor the market closely, the potential for Shiba Inu to recover remains a topic of interest, particularly in light of the insights shared by analysts.
While Shiba Inu faces significant challenges amid a broader market correction, the bullish sentiments expressed by analysts suggest that the meme coin is far from finished.
As the cryptocurrency landscape continues to evolve, Shiba Inu could yet surprise its investors with a remarkable turnaround.
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