Shiba Inu (SHIB) Price: Analyst Predicts Potential Recovery
Shiba Inu Price Prediction: Analyst Anticipates Rebound
Shiba Inu's price experienced a 1.79% decline today, August 2, trading at $0.000012. However, an analyst suggests that a recovery could be on the horizon, potentially reaching $0.0000239. This forecast is supported by the removal of 1 trillion SHIB tokens from exchanges.
Technical Analysis Suggests Potential Gains
Analyst Joe Swanson highlights two key patterns indicating possible upward movement in a recent X post:
- Cup and Handle Pattern: Formed from May highs to June lows and recent July highs, with the recent dip considered the 'handle' indicating a potential continuation of the uptrend.
- Double Bottom Pattern: Support established at $0.0000103. A rise to $0.000017 would confirm this pattern.
Swanson believes that if SHIB price defends the $0.0000103 support level, it could first reach resistance at $0.00001710 and then climb another 36% to $0.0000239.
Shiba Inu Price Chart (Source: X)
Whale Activity and Token Burns Support Bullish Outlook
The analyst emphasizes the importance of whale activity, noting a substantial increase in large holder netflows from 26 billion to 422 billion SHIB within 24 hours. This indicates significant accumulation despite the recent market downturn.
SHIB Large Holder Netflows (Source: IntoTheBlock)
Additionally, the SHIB burn rate has surged, with over 629 billion tokens burned recently, increasing the burn rate by over 1,700%. Combined with whale purchases, this has effectively shifted over 1 trillion SHIB.
These factors—whale buying and token burns—reduce the available supply and increase buying pressure, potentially driving the price upward.
Conclusion
Despite the recent price drop, bullish forecasts for Shiba Inu remain intact. An analyst suggests the current dip might be a temporary breather before the next rally, supported by whale accumulation and increased token burns.
Frequently Asked Questions
Why is Shiba Inu price down today?
The price is down due to a bearish trend across the broader cryptocurrency market.
How could SHIB price recover?
A recovery could occur with increased whale activity and a higher burn rate.
What is the impact of whale buying and SHIB burns?
Whale buying and increased SHIB burns are generally bullish indicators for Shiba Inu, reducing supply and increasing potential buying pressure.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Cryptocurrency investments are inherently risky, and you should conduct thorough research and consult with a financial advisor before making any investment decisions.