The price of SHIBA INU has dropped significantly this year, leading to a loss of billions of dollars in value. This mainly reflects the overall decline in altcoin prices across the market. On july 9, SHIBA INU was trading at $0.00001184, slightly above its lowest price of the year.
In this article, we will discuss 5 reasons that suggest SHIB still has the potential to recover.
Double Bottom Pattern
As the first reason, we want to highlight the formation of a double bottom pattern on SHIBA INUs daily trading chart. Typically, such a bottom is considered a bullish reversal setup, featuring two distinct low points and a neckline, which in SHIBA’s case is at $0.00001755. If a confirmed breakout happens above the neckline, SHIBA INU could move upward. However, if SHIBA INU drops below $0.00001035, this pattern would be invalidated and the price could decline further. Nevertheless, experts believe there is a strong possibility that SHIBA INU will return to its previous levels in the market.
Futures Open Interest
The open interest in SHIB futures has increased, mainly due to rising demand for SHIBA INU among traders. Historically, prices in crypto tend to rise after an increase in open interest. Moreover, a positive funding rate indicates that investors have growing confidence in SHIBA INUs price potential. In addition, the number of SHIBA INU users has now reached 2.82 million. Therefore, this is a positive sign that could support a price increase.
SHIB Supply Come Down
Another bullish signal is that investors are holding onto their tokens instead of selling them, which can be seen from exchange flow data. According to a report by Santiment, the current supply has dropped to 140.38 trillion tokens, down from 141 trillion reported 30 days ago.
This change indicates that investors, including major holders (whales), are not selling their tokens. In recent months, the supply held by whales has remained stable at around 709 trillion SHIB.
Bitcoin Price Rally
If there is an overall crypto bull run, there is a strong possibility that SHIBA INU will return to its previous levels. Bitcoin creating a new high will also positively impact SHIBA INU.
There is also a chance that the Federal Reserve will lower interest rates. In a statement on Tuesday, Jerome Powell mentioned that the bank might decide to cut rates as early as this month. Some believe rate cuts could begin from september, which would have a positive effect on crypto prices.
Additionally, according to Polymarket data, Bitcoin could reach its all time high before October. If this happens, more profit opportunities may appear in the altcoin market. This possibility is further supported by ongoing ETF inflows and the formation of a cup and handle pattern.
SHIBA INU Ecosystem
SHIBA INU could also return to its previous levels because of development within its ecosystem, such as Shibarium, which is a layer-2 network, as well as its metaverse project, NFTs, and DeFi initiatives.
In particular, metaverse projects are gradually gaining popularity and more people are becoming aware of them. As a result, SHIB could benefit from these projects in the future.
Conclusion
SHIBA INU has trended at different times for various reasons. Although it is currently trading at $0.00001184, there are many reasons why it could return to its previous levels. In this article, We have tried to discuss those reasons in detail.
Remember, the crypto market is highly volatile. So always consider the risk carefully before making any investment.
