Shiba Inu's price dropped 1.79% on August 2, reaching $0.000012. However, technical indicators and whale activity provide hope for a possible recovery.
Shiba Inu's Price Falls Amid Market Instability
Shiba Inu (SHIB) plummeted 1.79% in a day, driven by overall market instability. Nevertheless, certain technical indicators and large-scale buying by whales lead traders to hope for potential recovery after the decline.
Cup and Handle Pattern Predicts Upswing
Market analyst Joe Swanson highlighted two bullish setups on the SHIB chart. The first is a cup and handle formation developing from May to July. Swanson noted that the price pullback from $0.00001597 can be seen as the handle, suggesting a potential move to resistance at $0.00001710. This offers a chance for further growth to $0.0000239 if momentum continues.
Surge in SHIB Token Burn
The token's burn rate has surged sharply in honor of Shiba Inu's fifth anniversary. Over 629 billion SHIB tokens have been burned over a week, reflecting an increase of more than 1,700%. Combined with aggressive whale buying, this has significantly reduced the circulating supply of SHIB, potentially supporting a price resurgence.
The convergence of bullish chart patterns, increased whale activity, and significant token burns is drawing trader attention. While the price remains under short-term pressure, these factors suggest the groundwork for recovery may be in place.
