SHIB, the second-largest coin, plunged over 8% during Monday’s U.S. market trading hours. The sharp plunge can be attributed to Bitcoin drop below $65,000, with an intraday loss of 3%. With the meme cryptocurrency sector often volatile to new market changes, the Shiba Inu price hints at a potential retest to $x. support. Will the uptober rally sentiment trigger a major reversal?
Is Shiba Inu Price Set for Another Triple-Digit Surge in October?
According to Cryptorank analytics, the Shiba Inu price prediction is anticipated for prolonged recovery in October, showcasing an average return of 283%. While the fourth quarter appears promising for a potential rally, achieving triple-digit gains may be overly optimistic due to SHIB’s extraordinary rally in 2021.
The likelihood of a similar surge is diminished due to waning interest in meme assets and increasing competition, diverting investor attention away from SHIB.
However, the SHIB supply in top addresses remains sidelined at 61%, according to Santiment data. This sideways movement suggests that major investors are adopting a HOLD strategy.
Additionally, Shiba Inu’s supply on exchanges has seen a notable decrease this year, now standing at $144.4 trillion. This decline indicates reduced selling pressure and further aligns with the outlook for a potential price recovery.
SHIB Price Hints 9% Drop Before Major Reversal
Since last weekend, the Shiba Inu price witnessed a notable correction from $0.0000217 to $0.0000178, accounting for an 18% drop. The bearish turnaround likely coincides with the broader market pullback as Bitcoin drops below $65,000 on Monday. With sustained selling, the SHIB price could tumble another 9% before retesting suitable support at $0.000016.Â
The aforementioned level, coinciding with a bullish crossover of 20-and-100-day exponential moving average after 100 days, could recuperate the bullish momentum. The potential reversal will likely reveal a bullish reversal pattern called Inverted Head and Shoulder in daily charts.
The chart setup consists of three lows, where the middle low (the “head”) is the lowest, and the two outer lows (the “shoulders”) are slightly higher. If the pattern holds true, the Shiba Inu price could rebound from $0.000016 and rechallenge the neckline resistance at $0.000022.
On the contrary, if sellers drive a breakdown below the $0.000016 level, the buyers would also lose EMAs support and invalidate the bullish thesis.
Frequently Asked Questions (FAQs)
While a significant recovery is expected in October, with a projected 283% return according to Cryptorank, a repeat of the 2021 surge may be overly optimistic due to declining interest in meme assets and growing competition.
SHIB could experience a 9% drop to retest support at $0.000016, which coincides with a potential bullish crossover of the 20-and-100-day EMAs. A successful rebound could see SHIB challenge the $0.000022 neckline resistance
According to Santiment data, SHIB’s supply in top addresses remains at 61%, indicating that major investors are adopting a HOLD strategy,
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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