In recent days, the price of Shiba Inu (SHIB) has faced a decline, reaching a crucial support level. However, technical indicators and large holder accumulation suggest a possible bullish momentum.
Current Price Situation
As of now, Shiba Inu is trading at $0.0000115, which is above this week's low of $0.000010. This marks a 35% decrease from its peak in May and a 65% drop from its November high.
The drop in SHIB has been noted alongside the performance of other altcoins; the total market capitalization of cryptocurrencies, excluding Bitcoin, Ethereum, and stablecoins, has fallen from $947 billion in November to $583 billion today.
Technical Analysis
According to daily charts, the price of SHIB bottomed at $0.00000997 on Monday and then bounced back to $0.00001135. This was the lowest point of the week, matching lows from April and August 2024.
A double-bottom pattern has formed for SHIB, with the neckline at $0.00001755. The Relative Strength Index (RSI) has moved from 28 to 40. This serves as a strong bullish signal, indicating that the price may reach the neckline, resulting in a potential 55% increase from the current level. However, a drop below the key support level of $0.0000099 would invalidate this bullish outlook.
Factors Influencing Recovery
Despite the challenges, there are signs that the price of SHIB may soon begin to recover. Notably, changes in the activity of large holders: Santiment data shows that holders with between 1 million and 10 million tokens have increased their positions to 2.03 trillion from last month's low of 2 trillion.
Additionally, SHIB has become relatively cheap, with an MVRV figure of less than 1, indicating that it is undervalued as its market price is lower than its realized value.
The price of Shiba Inu currently shows signs of potential recovery. However, further movements will depend on maintaining key support and improving the internal ecosystem.
