Welcome to Extreme Investor Network, where we provide you with unique insights into the world of trading, stock market, and all things Wall Street. Today, we will be discussing the recent performance of Shiba Inu (SHIB) and how past price movements might be influencing traders’ behavior.
In January 2022, SHIB’s price saw a significant bounce of over 100% after testing the $0.000017 support level. This level had previously acted as a strong support in April 2024, leading to a 60% rebound. These past movements have left a lasting impression on crypto traders, as the memory of these significant price swings can influence market behavior.
However, not all instances have been bullish for SHIB. In May 2022, the coin decisively broke below the $0.000017 support level, leading to a 60% decline. This breakdown was triggered by the Terra collapse, a black swan event of massive scale. With no such event currently looming in 2024, and the market focusing on a potential “memecoin supercycle,” the likelihood of SHIB undergoing a strong breakdown below the support level seems low.
Looking at technical indicators, we see further support for a bullish outlook on SHIB. The ongoing formation of a Doji candlestick pattern on SHIB’s weekly chart suggests indecision in the market, potentially signaling a reversal. A Doji pattern occurs when a candlestick’s open and close prices are nearly identical, indicating a possible shift in momentum.
As we head into July, the Doji candlestick pattern on SHIB’s chart may hint at a bullish reversal in the coming weeks. Stay tuned to Extreme Investor Network for more unique insights and analysis on the stock market and trading world. Happy investing!