Shiba Inu is facing challenges in its recovery, as the broader market is losing momentum. However, market analyst Big Mike has outlined a scenario where Shiba Inu could potentially reach a projected value of $0.0005. This ambitious price target is supported by the completion of a fifth Elliott Wave on the weekly chart.
Shiba Inu has faced resistance in its uptrend, along with other leading cryptocurrencies like Bitcoin and Ethereum. Currently, SHIB is holding above the Fibonacci 0.382 level at $0.00002311, waiting for the market momentum to resume.
Big Mike’s analysis is based on the complex web of multiple Elliott Wave structures that Shiba Inu has been trading within since last year. In this analysis, SHIB completed the first wave with a high of $0.00001135 in August 2023. The second wave corrected to a low of $0.0000661 in October 2023, marking a significant correction. SHIB is currently on the third wave, which is expected to help recover the losses incurred from the second wave and potentially breach this year’s peak and all-time high. The projected rally could reach $0.0005059, representing a significant increase from the current price.
However, there are prevalent bearish sentiments in the market that could pose challenges to a substantial Shiba Inu rally. Investors have been depositing a net value of $11.359 million in Shiba Inu to exchanges, which could bolster selling pressure. Addresses holding between 1 million and 1 billion SHIB have been selling off or distributing their holdings, indicating continued selling pressure. In addition, Shiba Inu’s long/short ratio has seen a steady drop, suggesting an increase in short positions.
Despite the bearish sentiment, Shiba Inu is experiencing a gradual increase in social dominance. This trend often precedes a price increase. SHIB’s social dominance has seen a spike from a low of 0.6595 to the current value of 1.14%. As of now, Shiba Inu is trading for $0.00002478, showing a 1.64% increase in the last 24 hours.