Shiba Inu (SHIB) currently eyes a recovery push as it slips into the oversold region, with a market analyst projecting an imminent upsurge to $0.0001.
The recent market bloodbath took multiple victims, and Shiba Inu was one of them. Notably, The Crypto Basic confirmed that the turbulence, which analyst Mike Deutscher attributed to “altcoin dispersion,” resulted in a loss of $137 billion in the combined market cap of the top 125 altcoins in two weeks.
Specifically, Shiba Inu lost $4.21 billion from its valuation during this period, with its market cap dropping to the $10 billion mark. This was due to a slump from a high of $0.00002633 on June 5 to the current value of $0.00001820, representing a massive 31% collapse in just two weeks.
Shiba Inu Now Extremely Oversold
While this drop has left multiple investors at loss, some technical indicators have slipped into bullish regions. For instance, the Shiba Inu Relative Strength Index (RSI) has since dropped to a historical low of 15, according to market data sourced by CryptoQuant.
This extremely low value indicates that SHIB is significantly oversold. This low RSI value suggests that the selling pressure is very high and that Shiba Inu may be undervalued. The current position of the RSI is typically interpreted as a potential buying opportunity, with market analysts expecting a price reversal or rebound soon.
With Shiba Inu eyeing a recovery from the recent lows, market participants are increasing their holdings in anticipation. Data from Santiment shows that small investors holding between 100,000 and 1 million tokens have procured 2 billion SHIB this month, while large whales holding at least 1 trillion SHIB have accumulated nearly 500 billion tokens.
An Imminent Recovery
Interestingly, market analyst Sam_TCR projected this recovery in a previous TradingView analysis. The analysis came up when Shiba Inu had not dipped to this level, trading for $0.000022 at the time. With SHIB now below the $0.00002 level, the analyst’s projection of a resistance point at $0.00002320 remains valid.
According to him, if Shiba Inu can breach the $0.00002320 level, its next resistance would sit at $0.00002550. He predicted that a push above the $0.00002550 roadblock would set the stage for an imminent rally to the coveted $0.0001 price. Michael, another analyst, also expects a rally to the $0.0001 level.
Meanwhile, at its current price of $0.00001820, SHIB faces more formidable resistance on the path to $0.0001. The token must first breach the psychological level at $0.00002 before leveraging it as a launchpad for a significant uptick.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
