The analysis suggests that SHIB may reach $0.00003298 if it breaks above resistance.
Shiba Inu (SHIB) is currently trading at $0.00001781, up significantly from its $0.00001294 price just two weeks ago. Despite the drop from its local high of $0.00004605, recent analysis points to a potential reversal in its fortunes.
Recent analysis Rick_SimpleSwap on TradingView highlights several key factors that could influence future SHIB price movements. This includes volume profiles, resistance levels, and historical holding patterns according to on-chain data.
Volume profile and resistance levels
According to the analyst’s chart, the volume profile for SHIB indicates significant interest around current price levels, implying a potential consolidation area. This means that market participants are actively trading at these levels, which may stabilize the price.
The price action is currently attempting to recover and consolidate below the downward resistance level indicated by the yellow descending trendline on the chart. If SHIB manages to break this downward resistance, it could consolidate above this level, potentially leading to further price gains. The immediate resistance level identified is $0.00002963, with a potential target price of $0.00003298 if the breakout and consolidation occurs as expected.
The address’s hold time and activity show positive signs
On the chain is the “Coin Hold Time” chart from IntoTheBlock reveals that the average holding time for SHIB coins recently reached three months as of early July 2024. On July 1, 2024, the transaction volume was 9.21 trillion SHIB at a price of $0.000016. Historically, spikes in the average holding time have coincided with significant price movements, as was the case in May and September 2021.
The recent trend of increasing holding times suggests that more long-term holders are participating in the market. This may indicate growing investor confidence in the future potential of SHIBs, as increasing holding times typically imply a reduction in available supply, which could lead to a price spike if demand remains constant or increases.
Additionally, IntoTheBlock’s Address Statistics chart provides insight into new addresses, active addresses, zero balance addresses, and price correlations. As of July 1, 2024, there were 1.17K new addresses, indicating a steady influx of new participants. The number of active addresses was 3.64K, indicating moderate engagement in the SHIB network.
Addresses with zero balances totaled 1.1k, which could indicate either owners who sold their SHIBs or new addresses that have not yet received SHIBs. Historically, spikes in new and active addresses often precede price spikes, suggesting that increased interest and activity on the network could lead to new price increases.
Long-term prospects
Elsewhere, a recent survey reported The Crypto Basic, which featured 13 financial industry experts, highlighted the Shiba Inu breed’s ambitious long-term prospects, including the possibility of soon getting back $0.000045.
Shiba Inu has been a notable performer in the current crypto bull market, rising 3.5% in the last 24 hours, bringing its seven-day gain to 5.5%. Despite this, SHIB is trading 4.4% below its monthly high of $0.00001781. However, given that SHIB was worth $0.00001294 two weeks ago, its current market value implies a gain of 37.63%.
