Shiba Inu (SHIB), a popular meme coin, has experienced significant price volatility in recent months. While the broader cryptocurrency market faces a downturn, an analyst presents a bullish prediction for SHIB based on the Elliott Wave Theory. However, prevailing market sentiment and on-chain data paint a contrasting picture.
Potential Surge Based on Elliott Wave Theory
Market analyst Big Mike utilizes the Elliott Wave Theory, a technical analysis framework, to argue for a potential SHIB price surge. This theory proposes that trends unfold in a specific five-wave structure. Big Mike suggests SHIB is currently navigating the third wave of a larger uptrend on the weekly chart.
According to this analysis, the first wave peaked in early August 2023 at $0.00001135, followed by a correction (wave two) that drove the price down to $0.0000661 in October 2023. Big Mike anticipates wave three to propel SHIB beyond its previous highs, potentially reaching $0.0005059. This signifies a staggering 2000.91% increase from the current price of around $0.00002408.
Bearish Market Sentiment and On-Chain Data
Despite Big Mike’s optimistic outlook, current market conditions and on-chain data suggest significant challenges for a substantial SHIB rally. Bearish sentiment dominates the market, with investors depositing a net value of $11.359 million in SHIB to exchanges since April 22nd. This trend typically indicates increased selling pressure, potentially hindering upward momentum.
Santiment, a crypto data analysis platform, corroborates this concern. Their data reveals that addresses holding significant amounts of SHIB (between 1 million and 1 billion tokens) have consistently sold off their holdings. In addition, wallets holding between 100 million and 1 billion SHIB have offloaded a substantial 1.98 trillion tokens since February 24th.
A potential counterpoint to the bearishness is the gradual increase in Shiba Inu’s social dominance. This metric gauges the level of social media activity surrounding a cryptocurrency and can sometimes precede price hikes.
The future price trajectory of Shiba Inu remains uncertain. While the Elliott Wave Theory suggests a potential surge, prevailing market sentiment and on-chain data indicate significant obstacles.
The rise in social dominance offers a sliver of optimism, but its impact is difficult to predict precisely. Investors interested in SHIB should carefully consider both the bullish and bearish arguments before making investment decisions.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
