Maximilian, a crypto market analyst, has identified multiple factors capable of pushing Shiba Inu to the $0.000031 region despite the recent price crash.
The broader crypto market witnessed one of this year’s most substantial slumps yesterday, with most cryptocurrencies seeing double-digit losses over a 24-hour timeframe. Amid this downtrend, Shiba Inu has recorded a massive price drop, down 11.6% in the last 24 hours.
Factors that Could Push Shiba Inu Higher
However, market analysts see this drop as a mere retest of Shiba Inu’s lows, which could lead to a major price upsurge. In his latest TradingView analysis, Maximilian revealed that SHIB bulls have continued to hold onto their tokens despite the persistent downturn. This is a factor that points to a looming recovery.
The Crypto Basic called attention to this trend in a previous report, with most Shiba Inu shark and whale addresses retaining their holdings. Citing data from an accompanying chart, Maximilian indicated that SHIB had maintained stability within a rising channel on the 4-hour chart.
Shiba Inu 4H Rising Channel Maximilian
At the time of the report, Shiba Inu had dropped to $0.00002783. However, since then, the bears have triggered steeper declines amid the broader market collapse. As a result, SHIB has now relinquished the $0.000027, $0.000026 and $0.000025 price supports, currently changing hands at $0.00002417.
With this drop, Shiba Inu has slipped below the lower trendline of the rising channel, having breached below the pivotal support at $0.000027. Nonetheless, SHIB looks to leverage the imminent market recovery to record a push back into the channel.
Shiba Inu Sees Increased Volume
Another factor contributing to Maximilian’s optimism is the sustained increase in volume, which confirms that market participants have continued to show interest in Shiba Inu. Remarkably, SHIB’s trade volume has spiked 164% over the last 24 hours to the current figure of $1.2 billion, marking 8.41% of its market cap.
In addition, Coinglass data indicates that Shiba Inu’s derivatives volume has surged by a whopping 201% to $369.97 million in 24 hours. This increased volume comes despite a 21.79% drop in Open Interest to $66 million, as traders exit their positions amid the market crash and surge in liquidations.
Besides the rise in volume, Maximilian confirmed that Shiba Inu’s overall uptrend has continued to accumulate when it comes to market adjustment. He noted the significance of SHIB defending the recently breached channel support at $0.000027.
SHIB Eyes the $0.00003 Level
Now that the bears have conquered this territory, SHIB looks to reclaim it. Maximilian expects the price to stabilize once it enters this channel, with a bounce off the support potentially serving as a push toward the upper trendline of the channel. This could take Shiba Inu to $0.00003195.
Meanwhile, SHIB is now down 21% this month. Another analyst MBM Crypto noted yesterday that Shiba Inu had formed a bullish pennant amid its current price movements. The recent collapse has taken SHIB to the support range of $0.000024 to $0.000028. MBM Crypto sets a target of $0.0000348 once SHIB breaks above the pennant.
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