Shiba Inu (SHIB) has fallen more than 3% over the week, but analysts predict the trend may be reversing.
Shiba Inu (SHIB) experienced a sell-off last week, dropping more than 3% in just seven days and more than 4% in 14 days. However, despite this downward trend, some analysts are predicting that the trend may be reversing.
X-Platform chartist Jonathan Carter recently highlighted this point in his analysis, suggesting that SHIB is trading inside a descending channel and could soon see a trend reversal.
The Shiba Inu is trading in a descending channel, suggesting a possible trend reversal 🔺
If it breaks above the 50 MA and the resistance, we can expect a big upswing 📈
If the bullish momentum strengthens, keep an eye on the $0.000038 target 👨💻 pic.twitter.com/vtOLzfwlki
— Jonathan Carter (@JohncyCrypto) July 28, 2024
Carter’s chart shows that SHIB has been trading inside a descending channel since early April, with lower highs and lower lows indicating a bearish trend.
Notably, the chart shows a strong support zone near $0.0000100 and a resistance zone near $0.00004500. Notably, SHIB is currently approaching a descending support line that has historically provided price bounces.
Carter suggests that a breakout above the 50-day moving average (MA 50) and the descending resistance line could spark a strong upside towards the $0.0000380 objective. A surge to the $0.0000380 objective would represent an increase of roughly 120.29% from SHIB’s current trading price of $0.00001725.
Technical indicators are bullish
Supporting Carter’s analysis, data from TradingView shows that SHIB is trading near the lower end of its Bollinger Band and may be in an oversold state – a sign that prices are likely to revert to the mean and move higher.
Moreover, the MACD histogram is indicating that the bearish momentum is weakening and the MACD line is approaching the signal line from below, indicating a possible bullish crossover.
Additionally, the Accumulation/Distribution (Acc/Dist) line remained stable, indicating that there was no significant selling pressure despite the price drop. This stability indicates that investors are holding onto SHIB tokens in hopes of a price recovery.
Market sentiment and long-term confidence
Adding to this bullish sentiment, data from Santiment shows that Shiba Inu’s holdings have clearly increased over time, peaking in late April. Despite price fluctuations, holdings have remained relatively stable, indicating continued interest and confidence in SHIB from the investor community.
This stability suggests a strong base of long-term investors, which is positive for SHIB’s potential even during periods of price decline. The visible price movement is consistent with the descending channel identified by Carter, and the recent stabilization of holdings could act as a foundation for a price recovery.
Is a Shiba Inu a worthwhile investment?
Other analysts are observing similar bullish signs, with Aaron Arnold, founder of the Altcoin Daily channel, naming SHIB as one of the meme coins worth investing in during this bull market.
In a recent video, Arnold discussed the importance of meme coins with meme coin expert Rodney, highlighting their potential for life-changing profits. Rodney argued that despite being speculative, meme coins can achieve significant market caps, as seen with Dogecoin and SHIB in 2021. He noted that the current trend of focusing on community, narrative and content makes meme coins more sustainable and attractive.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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