Home DeFi & NFT Shiba Inu Faces Key Support Levels Amid 21% Dip in Macro Wave 3

Shiba Inu Faces Key Support Levels Amid 21% Dip in Macro Wave 3

Shiba Inu

Shiba Inu (SHIB) has faced significant price challenges this week, experiencing a sharp decline that mirrors broader market trends. As of writing, SHIB has dropped by 21.16% over the past week and 19.18% within the last 24 hours. Despite this downturn, an analyst suggests the cryptocurrency is still within a larger bullish framework, specifically within Macro Wave 3 of Elliott Wave Theory.

Understanding Macro Wave 3 and Shiba Inu’s Outlook

According to technical analysis by Charting Guy, Shiba Inu remains part of a larger five-wave impulse pattern, with the price currently in the middle of Macro Wave 3. This wave, often considered the longest and most robust part of an asset’s market cycle, could provide a solid foundation for future growth, provided the coin can hold specific support zones.

The critical support range for SHIB is between $0.000015 and $0.000016, which corresponds to the 0.618-0.786 Fibonacci retracement levels. These levels are particularly significant because they typically represent areas where a market correction is likely to end, allowing for a potential rebound. While Shiba Inu’s price briefly dipped below these support levels, it is currently attempting to recover, testing the strength of these key price points. If the cryptocurrency can maintain its position above these support zones, analysts believe a bullish rally could follow, possibly propelling SHIB toward its all-time high.

However, this potential recovery is not without its challenges. Currently, SHIB’s price remains around 83.5% below its all-time high, which means the cryptocurrency has considerable ground to cover before revisiting its previous peak. Many investors are waiting to see whether the current price action will stabilize or continue to dip further before deciding on the next course of action.

Whales, Retail, and Shiba Inu’s Market Dynamics

In addition to technical analysis, on-chain metrics from IntoTheBlock shed light on the shifting dynamics within Shiba Inu’s investor base. These metrics reveal a noticeable decline in network activity, which often correlates with price movements. Specifically, data from the past week shows a 34.03% decrease in new addresses, a 21.06% drop in active addresses, and a 28.76% reduction in zero-balance addresses. This decrease in overall participation suggests waning interest, particularly from retail investors.

Despite the drop in activity, other shifts in investor behavior are noteworthy. Whale holdings have decreased slightly by 0.76%, indicating that large-scale investors are trimming their positions. On the flip side, mid-sized holders have increased their investment by 6.37%, which could be a sign that smaller investors are slowly moving into SHIB at current levels. Retail participation, however, dropped by 1.99%, possibly indicating a cooling of interest in Shiba Inu as the market retraces.

What’s Next for Shiba Inu?

Given the current price action and the data available, the immediate outlook for Shiba Inu hinges on its ability to reclaim the critical support levels mentioned earlier. If the cryptocurrency can hold above the $0.000015 to $0.000016 range, there may be a chance for a rebound, and the price could begin to recover toward its previous all-time high.

However, if Shiba Inu fails to hold these support zones, the market may face additional downward pressure, potentially causing further price declines. For now, investors are closely monitoring Shiba Inu’s movements, looking for signs of a reversal or further decline. Analysts continue to highlight the importance of the ongoing consolidation process, with some expecting SHIB to rally significantly if it can regain traction within its current macro structure.

In conclusion, Shiba Inu’s future remains uncertain in the short term, but the coin’s position within Macro Wave 3 suggests that there may still be substantial room for growth if key support levels hold firm. Traders and investors will need to stay vigilant as the price stabilizes or continues to consolidate.

Read more about:
Share on

Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×