Shiba Inu has shown signs of potential recovery following an extended period of decline, indicating a potential for trend reversal.
Downtrend Overview
Shiba Inu has struggled to regain the $0.00003 price zone since it fell below this threshold on December 9. The persistent downtrend has raised concerns among investors, but recent movements suggest a shift may be on the horizon.
Buy Signal Emerges
On December 22, Shiba Inu’s price retested the critical support level of $0.000020. Following this, the cryptocurrency made a slight recovery, climbing back to approximately $0.000023. Market analyst Ali Martinez has noted that this uptick could signify the end of the current correction, bolstered by the recent buy signal from the TD Sequential indicator.
The Context of Recent Price Drops
The price of SHIB fell sharply after hitting a local resistance level of $0.00003343 on December 8. This resistance was met with significant selling pressure, resulting in a staggering 15.3% intraday decline—the largest daily loss for SHIB since May 2022. The TD Sequential also provided a sell signal during this peak, underscoring the intensity of the reversal.
As market dynamics continue to evolve, Shiba Inu investors will be closely monitoring these price levels for any signs of sustained recovery.
