
- Shiba Inu coin entered a neutral price territory right after WazirX’s hack.
- The Elliott Wave theory produces an interesting observation on SHIB.
- The calmed burn rate and Open Interest dip add extra hurdles for SHIB.
Shiba Inu (SHIB) has been lagging in price compared to its peers in the meme coin sector. While Dogecoin (DOGE) inked small weekly gains of just under 5%, its smaller rival, Dogwifhat (WIF), fetched 18% in seven days.
Shiba Inu Coin at Even-Handed Territory
This week’s stagnant price movement for Shiba Inu confused SHIB custodians, who enquired about the near-future prospects of SHIB’s price performance from several technical crypto analysts on X.
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For instance, crypto charterer Crypto Jobs posted an elaborate analysis of SHIB’s technical implications, marking the current position of $0.000017 as local support. The trader with 33.5K followers on X scribbled the area of $0.00001640 to $0.00001850 as the “neutral zone,” where neither bulls nor bears gain significant traction.
Indeed, Shiba Inu (SHIB) has been trading inside this price range for the past 24 hours, while the weekly top of $0.00001934 suggests the most recent attempt for a breakout happened on July 18, 2024, right before the largest Indian crypto exchange WazirX got hacked for $234M, entangling Shiba Inu coin amid the drama.
Then, in a few hours, Shiba Inu dipped momentarily to $0.00001749 from the weekly top, as the hacker sold off a whopping 3.63T SHIB tokens, equivalent to $90.2 million at stamped transaction time. In case the bears took the steering wheel again, the technical analyst predicts a fall to $0.00001500, plunging below the lower support levels of $0.00001650.
Here’s What SHIB’s Breakout Depends On
“Sometime, it’s better to observe than trade,” contemplates tech analyst Crypto Jobs, putting SHIB in the category of coins that require a lot of patience. “It’s a difficult coin to trade yet. I recommend you to wait for lower levels to be tested to enter into a long position.”
In a bullish scenario, SHIB is gearing up to tackle upper resistance at $0.0000210, given that SHIB closes outside of the “Neutral zone” at or above $0.00001850. Aside from the technical perspective, SHIB’s upcoming direction highly relies on the SHIB burn rate and the interest in the token shown by Derivatives traders.
Currently, both of these metrics are positioned slightly on the bearish side. Shiba Inu’s burning tracker reported a 4.82% drop in daily burns. Leveraged unsettled plays on Shiba Inu’s 1000-SHIB Derivatives contract slid by 2.23%, sending SHIB’s daily Derivatives volume down by 11%.
Technical analysts remain optimistic about the long-term outlook on Shiba Inu. Binance KOL manager and dip-oriented analyst, nicknamed ETF, explained that Shiba Inu’s price is likely poised to ride the third Elliott Wave. Invented by mathematician Ralph Nelson Elliott, this theory is based on the asset’s recurring fractal structures.
By this logic, the analyst pinpointed Shiba Inu’s rise to the all-time high of $0.00008616 on October 28, 2021, to resemble the first Elliott Wave. Labeled as the second wave, the meme-driven March 2024 bull rally sent the SHIB coin to the yearly height of $0.000044.
Finally, the Elliott Wave fractal breakdown has SHIB “howling at the moon,” according to the crypto trader. If that’s the case, a new all-time peak for SHIB remains in play, but traders shall stay vigilant and wait for technical confirmation of the third wave before relying on this theory.
On the Flipside
- The future price movement for Shiba Inu coin also highly depends on the progress in Shibarium, SHIB’s own Layer-2 blockchain, and the upcoming Layer-3 blockchain.
- The enhancements surrounding Shibarium revolve around decentralization, which significantly contributes to the gradual dropping of SHIB reserves on centralized exchanges.
Why This Matters
SHIB remains the second largest token in the meme currency department. Due to an active developer team and a vibrant online community, it is often considered a long-term store of value.
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