Shiba Inu’s Rocky Path to New ATH Amid Market Skepticism
In A Nutshell
Speculations around Shiba Inu (SHIB) potentially erasing another zero from its price and surpassing its all-time high (ATH) have been circulating amidst the crypto community. Despite the 73.02% decrease from its peak in October 2021, some analysts remain optimistic about SHIB’s price reaching $0.0001. However, current market conditions and sentiment indicators suggest that achieving such a milestone could be more challenging than anticipated.
Understanding Market Sentiment
An analysis by AMBCrypto highlights the current struggle between bulls and bears in the Shiba Inu market. The Bulls and Bears indicator from IntoTheBlock shows a lean towards bearish sentiment, with bears currently dominating by a small margin. This indicator is crucial as it reflects the buying or selling pressure of addresses that have transacted 1% of SHIB’s trading volume. The dominance of bears implies a potential decline in SHIB’s price, further challenging the token’s ability to reach new heights.
Technical Perspectives on Price Movement
Technical analysis of SHIB’s daily chart reveals a lack of clear direction, with the price moving within a tight range. Support at $0.000022 has been crucial, but a slip below this level could see SHIB’s price drop to $0.000018, a 23.92% decrease from its current value. On the flip side, overcoming resistance at $0.000027 could propel SHIB towards $0.000038, marking a 64.01% increase. Additionally, the Network Value to Transaction (NVT) ratio, sitting at 153.65, suggests that Shiba Inu’s network is currently undervalued relative to its transaction volume, hinting at possible price appreciation in the mid-term.
Is a New ATH Feasible?
The question of whether SHIB can erase another zero and surpass its ATH is complex. While the low NVT ratio indicates undervaluation, which is generally a bullish sign, the prevailing bearish sentiment and resistance levels present significant challenges. Furthermore, the absence of the bullish euphoria that accompanied SHIB’s previous surges suggests that reaching a new ATH, particularly $0.0001, might not occur in the near term.
Our Take
The potential for Shiba Inu to achieve a new ATH in the near future appears to be tempered by a combination of bearish market sentiment, technical resistance levels, and the lack of a strong bullish momentum. While the undervaluation of SHIB’s network could support price recovery and appreciation, investors should remain cautious and consider the broader market dynamics and sentiment indicators. As always, in the volatile world of cryptocurrency, factors such as market sentiment, global economic conditions, and unforeseen events can rapidly alter the trajectory of any token, including Shiba Inu.
