Some market analysts believe Shiba Inu could launch toward the $0.0001 price region once its recovery push gains momentum.
Shiba Inu has been on a bearish slope since May 29, when it retested the $0.000029 territory in an attempt to reclaim $0.00003. This downtrend has been primarily triggered by the chaos witnessed in the broader crypto market, which has pushed Bitcoin (BTC) below $65,000.
Shiba Inu on a Sustained Downtrend
SHIB, which boasts a high level of price correlation with Bitcoin, has equally recorded similar declines. However, Shiba Inu’s downturn is more pronounced than Bitcoin’s due to its higher volatility. SHIB is down 29% this month, wiping out the 13% gain it witnessed in May.
Notably, during the May price action, market analyst Sam TCR took to TradingView to project an imminent rebound that could see Shiba Inu reclaim and surpass the $0.000045 yearly peak. At the time, SHIB changed hands at $0.00002279, looking to breach the $0.00002320 resistance point.
While Sam TCR envisioned a breakout move, he warned of the possibility of further price declines below the $0.000022 territory. He noted that this is likely possible with the resurgence of sellers. According to the analyst, such a downward push would take Shiba Inu to the $0.00002 support with increased bearish momentum.
This projection materialized on June 13, when SHIB collapsed to a low of $0.00002095. The downtrend persisted until the $0.00002 support was eventually broken. The bears also conquered the $0.000019 level, pushing Shiba Inu to the lower spectrum of the $0.000018 price territory.
A Recovery to $0.0001
Shiba Inu now changes hands at $0.00001801, on the brink of losing $0.000018. Despite this, Sam TCR projects an imminent reversal, with his target set at the $0.0001 price goal. One situation supporting the imminent reversal is Shiba Inu’s undersold position.
Due to the latest price crash, Shiba Inu’s relative strength index (RSI) has collapsed below 30, currently sitting at 29.03 as of press time. This figure, which indicates that Shiba Inu is extremely oversold, represents the lowest level recorded by SHIB’s RSI this year.
The Shiba Inu Commodity Channel Index (CCI) has also dropped to a significantly low level, currently at -111. This further confirms the notion that Shiba Inu trades at an oversold region. As a result, traders and market analysts expect a rebound that could help SHIB reclaim lost grounds.
SHIB Knight, a Shiba Inu community figure and market analyst, also projects a looming rally toward $0.0001. Data from his chart suggests that Shiba Inu could record a choppy yet decisive push to the $0.0001 territory once it breaks out of the current market position.
See you at 0.0001 $SHIB ? pic.twitter.com/2gcHZ3TUr8
— $SHIB KNIGHT (@army_shiba) June 20, 2024
In addition, Michael, another notable market watcher, previously asserted that SHIB could engineer a run to $0.0001011 once it breaks out of its bull flag on the weekly timeframe. Meanwhile, Shiba Inu is trading flat over the last 24 hours, battling to retain the $0.000018 support level, as a decisive push below it could lead to further losses.
