Crypto analyst Crypto Lalit highlights that Shiba Inu must break the key resistance level above $0.00001765 for a potential breakout, while current market sentiment shows a balanced distribution.
A crypto analyst, Crypto Lalit, has highlighted the importance of Shiba Inu (SHIB) breaking a significant resistance level. According to the analysis, SHIB has been following a downward trendline since early June, consistently testing this resistance without successfully breaking above it.
As of the latest data, Shiba Inu is trading just below this trendline at $0.00001765, showing slight upward movement that suggests a potential breakout attempt.
Let $SHIB break this Trendline will go long in #SHIBUSDT with 10X pic.twitter.com/MYJCLrYrye
— Crypto Lalit (@CryptoLalit151) June 25, 2024
Potential for a Breakout
The analyst suggests that if SHIB breaks above this trendline, it could lead to a significant upward movement. The strategy recommended involves going long on SHIB/USDT with a 10x leverage upon a confirmed breakout.
This approach relies on the common market behavior, where breaking a long-standing resistance often triggers substantial price increases. Currently, SHIB has a price of $0.00001762. Despite a 1.75% price increase in the last 24 hours, Shiba Inu has seen a 6.03% decline over the past week.
Bulls and Bears Analysis
IntoTheBlock data shows a relatively balanced distribution between bulls and bears from September 2020 to May 2024. During the 2021 bull run, there was a notable increase in bullish addresses, indicating a significant number of large addresses purchasing Shiba Inu.
However, post-2021, the chart reveals a rise in bearish addresses as the price corrected. From 2022 to early 2023, the market showed stability with a balanced distribution between bulls and bears, suggesting consolidation. Recent activity in 2023-2024 indicates a slight increase in bearish addresses due to a downturn in SHIB’s price.
Meanwhile, according to Ali Martinez, an on-chain analyst, the TD Sequential indicator has recently flashed buy signals for SHIB in addition to Solana and Cardano on the daily timeframe.
This signal emerged after a market shakeout where most altcoins hit new multi-week lows. For SHIB, this resulted in a bottom at $0.00001642, marking a 38% dip from its June 5 high. The technical indicators suggest that patient investors might find this a prime buying opportunity, anticipating a significant rebound.
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.
