Shiba Inu (SHIB) Two-Month-Old Downtrend Invalidation Likely

6 months ago 3

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Shiba Inu’s (SHIB) price is seeking support from the broader market cues and its investors to break free from the ongoing downtrend.

This could happen in the coming days as SHIB holders have switched from selling to HODLing.

Shiba Inu Investors Seem Serious

Shiba Inu’s price has not always noted an impact of its investors’ actions in bullish scenarios since the meme coin is mostly a whale token. However, conviction among retail and whales is certainly a positive factor for the meme coin.

This increasing confidence towards a rise is visible in their action and evident in the decline in active deposits. Active Deposits refer to the unique addresses that move SHIB from their wallets to the exchange deposits. A spike in this metric is also synonymous with increased selling pressure.

In the case of SHIB, the active deposits are consistently declining. Currently, this metric is at a multi-week low, which means that investors are not too keen on selling their assets.

This sentiment is further strengthened by the fact that even short-term investors are acting bullishly. The overall supply held by them has declined by 1 trillion SHIB worth over $22.3 million in the span of three weeks.

This is a positive sign since short-term holders tend to hold their supply for less than a month. As a result, the asset becomes susceptible to selling and corrections.

However, a move from short to mid-term holders is positive since the latter hold their SHIB for over a month and less than a year.

Put simply, SHIB appears to be in a good place.

SHIB Price Prediction: Looking for a Breakout

Shiba Inu’s price of $0.00002387 is above the critical support of $0.00002093. This level has been holding strong for a while, and so has the downtrend line. However, SHIB is initiating a breakout, which, aided by investors, could lead to a rally.

For the same, the meme coin would need to first flip the resistance at $0.00002584 into support. This would push SHIB towards $0.00002835 breaching, resulting in a bull run.

On the other hand, a breakdown below $0.00002093 could result in a massive drawdown to $0.00001473, the next crucial support. There is also a possibility that a failed breach could keep the meme coin consolidated within $0.00002584 and $0.00002093, invalidating the bullish thesis in any case.

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