Market analysts confirm Shiba Inu has entered a buy zone, predicting a looming rally to $0.000085 upon breakout of a prevailing flag pattern.
These commentaries come on the back of the ongoing market collapse, as SHIB records one of its largest short-term declines.
The current market collapse has erased its May gains, with Shiba Inu now down 42.41% from the $0.00002945 peak. Interestingly, most seasoned investors regard periods of market downtrend like this as opportunities for accumulation.
Shiba Inu Slips into Buy Zone
Market analyst SHIB Knight holds the same sentiment. The market watcher stressed in an analysis that SHIB has entered the buy zone on the weekly timeframe. The region aligns with the midpoint of the $0.000017 territory. Notably, The Crypto Basic previously confirmed that this zone represents a significant resistance area for SHIB.
$SHIB is on buy zone at weekly chart. Bulls should defend this zone for uptrend. pic.twitter.com/yrYtZTPud6
— $SHIB KNIGHT (@army_shiba) June 26, 2024
With Shiba Inu now below the $0.000017 threshold, market participants looking to augment their holdings have an opportunity to procure the token at discounted levels. SHIB now trades for $0.00001696, looking to recover the $0.000017 level to hedge against any steeper declines.
Notably, SHIB Knight stressed that Shiba Inu must defend this area to have a chance at an uptrend. If the bears manage to trigger further drop from this current level, Shiba Inu’s last defense point rests at the lower level of the $0.000016 region, specifically Fib. 0 at $0.00001626.
A $0.000085 Price Target
The Crypto Basic confirmed this support earlier in the week, with projections of a push toward $0.000024. However, despite identifying the buy zone, SHIB Knight failed to present any price targets for when a rebound occurs. Meanwhile, in a separate analysis, TradingView analyst Esmaei Baiki set an ambitious target range.
Baiki showed that Shiba Inu currently trades within a bull flag on the daily timeframe. The pole of this pattern formed during the rally from late February to March. However, the flag itself has formed amid the ongoing retracement from the $0.000045 peak.
The analyst says SHIB retested the floor of the flag as it collapsed to $0.000017. He projects an upcoming bounce, expecting Shiba Inu to eventually break above the upper trendline of the flag. According to him, this breakout will eventually push SHIB by 400% to a range of $0.00008 to $0.000085.
Shiba Inu Sees Increased Buying Pressure
Further, data from IntoTheBlock suggests that Shiba Inu boasts a bid volume of 28.78 billion tokens across 11 exchanges, including Binance, Coinbase and KuCoin. However, the ask volume on these platforms amounts to a lower 27.94 billion figure.
With a higher bid volume (28.78 billion) compared to the ask volume (27.94 billion), there is more buying interest than selling interest. This could indicate potential support for the price and a possibility of a price reversal or stabilization, even during the downtrend.
In addition, data confirms that yesterday, bulls procured 1.64 trillion SHIB tokens worth nearly $28 million. Conversely, bears sold about 1.6 trillion tokens, indicating lower sell volume than buy. As a result, demand exceeded sales by over 38 billion tokens. With Shiba Inu currently trading for $0.00001696, these metrics could bolster chances of a rebound.
