Shiba Inu (SHIB) Price Shows Potential for Recovery Amid Volatility

December 11, 2024 03:41 PM AEDT | By Team Kalkine Media

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Shiba Inu (SHIB) Price Shows Potential for Recovery Amid Volatility — Image source: shutterstock

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Highlights

Shiba Inu (SHIB) price has experienced significant fluctuations in recent days.

Crypto trends and economic data are key factors influencing SHIB price movement.

Technical analysis suggests a bullish outlook for Shiba Inu (SHIB) despite recent declines.

The cryptocurrency market has seen notable turbulence recently, with Shiba Inu (SHIB) facing sharp declines. Over the past two days, SHIB has dropped to its lowest point since late November, marking a decline of more than 27% from its peak this year. These movements indicate a technical bear market, but technical patterns suggest potential upside for the token.

Why Shiba Inu (SHIB) Price Declined

The broader cryptocurrency downturn has significantly impacted SHIB, with its decline aligning with a market-wide retracement. Bitcoin's recent dip, from a record high of $104,000 to $95,000, acted as a catalyst for sell-offs across various altcoins. Historically, sharp reversals often follow significant rallies in the cryptocurrency space.

For instance, major indices like the Dow Jones and leading cryptos such as Bitcoin have witnessed similar patterns. After Bitcoin surged to $73,686 in March, it faced a notable pullback, dropping to $49,800 in August. Shiba Inu (SHIB), following this trend, has similarly retraced after touching a resistance level at $0.00003276.

External economic factors are also influencing SHIB’s performance. Market participants are closely watching upcoming US inflation data, which may influence the Federal Reserve's monetary stance. Expectations of slightly higher inflation rates have added uncertainty, leading to a cautious market sentiment.

Moreover, SHIB’s futures open interest has dropped significantly, from $184 million earlier this month to $92 million, signaling reduced trading demand and adding to the downward pressure.

Technical Indicators and SHIB’s Price Outlook

Despite recent setbacks, technical indicators suggest a positive outlook for Shiba Inu (SHIB). On the daily chart, SHIB remains above key technical levels, including the 50-day Exponential Moving Average and the lower boundary of an ascending channel. These patterns suggest strong support levels.

Additionally, SHIB appears to be forming a handle within a larger cup-and-handle pattern. This setup often precedes upward price movements, and a break above the resistance at $0.0000327 could drive further gains. If the token surpasses this level, the next target could reach $0.000045, reflecting an increase of around 77% from current levels.

The combination of technical strength and market dynamics positions Shiba Inu (SHIB) as an intriguing token to monitor, with potential recovery scenarios tied closely to broader cryptocurrency trends.

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