Shiba Inu Buy Signal Finally Emerges, Here are SHIB Addresses in Profit at Current Price

Shiba Inu finally flashes a buy signal on the daily chart after days of anticipation, suggesting the current downtrend could be near an end.

Notably, the downtrend has persisted for nearly three weeks, as SHIB has failed to recover the $0.00003 price territory since dropping below this price mark on Dec. 9. 

Shiba Inu Flashes Buy Signal

Interestingly, Shiba Inu’s pullback resulted in the retest of the $0.000020 support level on Dec. 22, after which, the dog-themed meme coin recovered mildly to reclaim $0.000023. Amid this rebound, market analyst Ali Martinez believes the correction might be close to an end.

The TD Sequential indicator presented a buy signal on the #ShibaInu $SHIB daily chart, anticipating a rebound to $0.000026 or even $0.000029! pic.twitter.com/N2QZSs0nCl

— Ali (@ali_charts) December 24, 2024

For context, data from the daily chart indicates that the TD Sequential indicator has flashed a buy signal for Shiba Inu. The TD Sequential helps traders identify trend exhaustion and reversals, and the buy signal suggests the downtrend is weakening.

Citing this indication, Martinez revealed that he is anticipating a potential recovery toward the $0.000026 price region. The last time Shiba Inu saw this level was on Dec. 18, as it relinquished it amid an 8.62% price collapse that day.

After reclaiming the $0.000026 level, Martinez expects the dog-themed asset to push to the $0.000029 mark. Recovering this region could grant the bulls enough strength to again eye the $0.00003 psychologically relevant region.

The Recent Price Collapse

The last time SHIB retested the $0.00003 was nearly three weeks ago, leading to the ongoing correction. For context, after soaring to a local resistance level of $0.00003343 on Dec. 8, Shiba Inu bulls faced an intense roadblock as the momentum in the broader crypto market cooled. 

This resistance resulted in a massive 15.3% intraday collapse for SHIB, representing its highest daily loss since the Terra implosion in May 2022. Interestingly, Martinez’s chart confirms that the TD Sequential flashed a sell signal for Shiba Inu when it hit the $0.00003343 resistance on Dec. 8.

The ensuing price drop marked the beginning of Shiba Inu’s current downward trend, with the hawkish comments from Jerome Powell, the Federal Reserve Chair, further exacerbating selling pressure across the market.

Shiba Inu Holders in Profit at Current Price

Now, despite the mild rebound, Shiba Inu is down 10% over the past week, currently trading for $0.00002326 as of press time. At the current price, data from IntoTheBlock confirms that up to 785,900 addresses, representing 55.32% of total holders, are still in profit.

However, about 37.12% of holders, amounting to 527,330 addresses, procured SHIB above the current price, and as such, are observing losses on their holdings. Meanwhile, Shiba Inu addresses that are at breakeven total 107,380, representing 7.36% of the total.

Further data suggests that Shiba Inu would likely face intense resistance on the journey to recover $0.00003. Notably, once it breaches $0.000025, the meme coin would face a sell wall between $0.000025 and $0.00003.

Within this price range, about 165,580 wallets bought 62.5 trillion SHIB, setting up the most potent supply wall for Shiba Inu. Nonetheless, sustenance of the recent whale accumulation trend could help support bullish momentum when the downtrend flips.