Shiba Inu Needs to Break This Level to Push Towards $0.00002954

Shiba Inu seeks to breach the upper trendline of a multi-month descending channel at $0.00002444 in an attempt to push toward $0.00002954.

The recent market volatility dealt a blow on prices, triggering a 14.88% drop in the value of Bitcoin (BTC) last month and equally exerting selling pressure on altcoins. Shiba Inu witnessed a 27.16% price collapse in April, but now looks to recover these losses in a recovery campaign.

Market analyst Ali Martinez confirmed in his analysis that, on the 4-hour timeline, Shiba Inu has continued to trade below the upper boundary of a descending parallel channel since March. All attempts to breach this upper boundary have proven futile. 

Shiba Inu Looks to Breach Major Resistance 

However, the recent recovery effort has seen Shiba Inu again flirting with the upper boundary. SHIB closed yesterday with a 4.71% gain, its highest intraday gain since May 3. It now records an 8.20% upsurge over the last 24 hours, making it one of the largest gainers among the top 100 assets.

Martinez’s analysis suggests that Shiba Inu would face another stern resistance at the upper boundary as the ongoing rebound progresses. According to him, this resistance level currently sits at the $0.00002444 price, aligning with the Fibonacci 0.382 level on the daily timeframe.

If #ShibaInu breaks the upper boundary of this descending parallel channel at $0.00002444, $SHIB could witness a 20% upswing to $0.00002954! pic.twitter.com/z5qBKiiyNy

— Ali (@ali_charts) May 13, 2024

With Shiba Inu now changing hands at $0.00002361, data from IntoTheBlock (ITB) confirms that it faces minimal resistance below the $0.0000244 price territory. Notably, the only supply wall posing a threat to SHIB’s journey toward $0.000025 consists of 21,660 addresses, which hold 7.58 trillion SHIB at an average price of $0.000024.

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Breaching this area would put Shiba Inu above the upper boundary of the descending channel, a position capable of catalyzing more gains. Accordingly, Martinez believes SHIB has the potential to engineer a push toward $0.00002954 once it breaks above the $0.00002444 territory.

SHIB Faces Market Turbulence

Nonetheless, amid a recent drop in volatility, Shiba Inu has to navigate a market dominated by bears over the last few days. Volatility has dropped to 75.55%, according to ITB data, down from the 232.58% high on March 4 when SHIB clinched the yearly high above $0.000045. 

Further data shows that the bears have overshadowed the bulls in the past three days, with 44 whale addresses selling over 1% of the 24-hour volume from May 11 to 13, while 41 whale addresses have purchased over 1% of the 24-hour trade volume within the same timeframe.

SHIB needs to witness a resurgence of buyers to sustain the ongoing upward momentum. Interestingly, while SHIB has recorded a massive 269% increase in derivatives volume to $309 million in 24 hours, the long/short ratio sits at 0.9654, indicating a prevalence of short positions as market participants bet on a correction.