Amid the recent downturn, an analyst has pointed out that Shiba Inu is currently in Macro Wave 3, with support levels ranging from $0.000015 to $0.000016.
Shiba Inu (SHIB) experienced a sharp decline at the start of the week, reflecting broader market trends. The price dropped to an intraday low of $0.000014, marking a significant pullback. As of writing, SHIB has fallen 19.18% in the last 24 hours and 21.16% over the past week.
Despite the downturn, technical analysis suggests key support zones SHIB must maintain before any potential recovery toward its previous all-time high.
Macro Wave 3 in Play For Shiba Inu
An observation shared by Charting Guy on X suggests SHIB remains within a broader bullish structure, according to Elliott Wave Theory. The analysis outlines a five-wave impulse pattern, where the price is currently positioned in Macro Wave 3.
Typically, this wave is the strongest and longest in the cycle. Although Wave 2 within Macro Wave 3 retraced deeper than initially expected, the price still maintains a bullish outlook within the wave structure.
Per the analyst, key zones for Shiba Inu are between $0.000015 and $0.000016, corresponding to the 0.618-0.786 Fibonacci retracement range. At press time, Shiba Inu has already breached these levels but is attempting to reclaim them.
Meanwhile, the analyst expects SHIB to pump hard from these points. Accordingly, he noted that once SHIB reaches its all-time high, he plans to sell his entire position before the onset of Wave 4.
However, SHIB’s current price remains 83.50% below its all-time high, indicating significant ground to recover before revisiting previous peaks.
Reduced Engagement For Shiba Inu
Elsewhere, on-chain metrics from IntoTheBlock indicate a decline in network activity, which often correlates with price movement.
Data from the past seven days show a 34.03% decrease in new addresses, a 21.06% drop in active addresses, and a 28.76% decline in zero balance addresses.
These reductions suggest lower participation levels within the SHIB ecosystem, aligning with the current price retracement toward the identified Fibonacci support zone.
Meanwhile, shifts in ownership dynamics present a mixed picture. Whale holdings have decreased by 0.76%, signaling a minor reduction in large-scale investor positions.
Conversely, investor activity has increased by 6.37%, suggesting heightened engagement from mid-sized holders. Retail participation, however, has dropped by 1.99%, indicating a potential cooling interest among smaller investors.
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