Shiba Inu to $0.0005, Analyst Argues Case with Elliott Wave Theory

Market analysts have outlined a scenario in which Shiba Inu (SHIB) could potentially reach the forecast value of $0.0005, supported by the impending completion of the 5th Elliott Wave on the weekly chart.

Shiba Inu The company faces obstacles on the road to recovery as the overall market loses momentum. After a sustained decline to a low of $0.00002057 on May 1st, SHIB rose 28% to regain a high of $0.00002632 on May 4th before witnessing resistance to the uptrend.

This resistance was felt across the broader market, including major cryptocurrencies such as: Bitcoin (BTC) and Ethereum (ETH) Steam is also lost. After the failure, SHIB remains above the Fibonacci 0.382 level at $0.00002311, awaiting a resumption of market momentum.

Possible surge to $0.0005

Amid the current market conditions, market analyst Big Mike predicts an ambitious price target for Shiba Inu when it finally takes off. Citing weekly chart data, the analyst noted that SHIB has been trading within a complex web of multiple Elliott wave structures since last year.

For the largest wave structure (shown in white), the Shiba Inu completed the first wave when it rose to the top. expensive The second wave then pushed SHIB to a low of $0.0000661 in October 2023, marking a correction of over 41.7%.

The Shiba Inu is currently in the third wave, which Big Mike hopes will help him recoup the losses suffered in the second wave. A third wave could also help SHIB surpass both targets this year. $0.000045 at peak time The all-time high was $0.00008845, and it is expected to rise to $0.0005059. This is an increase of 1,941% from the current price of $0.00002478.

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Shiba Inu faces widespread weakness

However, sentiment remains largely bearish and current market realities could pose a problem for a significant Shiba Inu rally. Since April 22, amid the market turmoil, investors have deposited a net $11.359 million in Shiba Inu on exchanges, according to Coinglass. data.

SHIB Exchange Netflow Coinglass
SHIB Exchange Netflow Coinglass

increased Deposit to the exchange Usually, selling pressure builds up and blocks upward momentum. data Santiment research further confirms this selling pressure, with addresses holding between 1 million and 1 billion SHIB continuing to sell or distribute their holdings, as seen in the graph below.

Shiba Inu address balanceShiba Inu address balance
Shiba Inu address balance | Santiment

The largest group of sellers are those holding between 100 million and 1 billion tokens. Remarkably, these wallets have sold off 1.98 trillion Shiba Inu since February 24th, and their cumulative balance is now 19.73 trillion.

Additionally, Shiba Inu Open Interest (OI) rose 2.57% to $65.19 million in the past 24 hours, while the long/short ratio has been steadily decreasing and currently stands at 0.8443. This indicates that short positions are increasing as traders are betting on an impending price decline.

Despite the prevalence of bearish trends, the Shiba Inu’s social dominance is gradually increasing, and this trend often precedes an impending price increase. Mr. SHIB social control It has soared from its low of 0.6595 on April 30 to 1.14% currently. At the time of writing, the Shiba Inu is trading at $0.00002478, up 1.64% in the past 24 hours.

Shiba Inu Social Dominance SantimentShiba Inu Social Dominance Santiment
Social Advantages of Shiba Inu | Santimento

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.

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