Shiba Inu Price Analysis: SHIB Traders Mount 1.4 Trillion Buy-Wall after 30% Correction

Shiba Inu Price Analysis (October 3, 2024)

Shiba Inu price plunged as low as $0.000015 on Thursday, October 3, continuing a 6-day losing streak amid escalating tensions in the Middle East. After a 30% decline this week, on-chain data indicates that strategic buyers are stepping in to capitalize on the market’s dip.

Can this growing buy-wall momentarily halt SHIB’s downtrend?

Shiba Inu’s Weekly Timeframe Losses Approaches 30%

As global geopolitical risks intensified, sending shockwaves across cryptocurrency markets, Shiba Inu (SHIB) price has emerged as one of the biggest losers among the top 10 ranked assets, within the weekly timeframe.

The memecoin sector, known for its low liquidity and high sensitivity to media sentiment, often suffers from outsized selling pressure during periods of intense Fear, Uncertainty, and Doubt (FUD). This week’s price action for SHIB further emphasizes this narrative.

The chart below demonstrates that SHIB’s price fell to $0.000015 on October 3, marking a 28.9% decline from last month’s peak of $0.000022, recorded just six days ago on September 27.

Notably, while SHIB has approached a 30% loss, the broader crypto market cap has only declined by 14% over the same 6-day period. This sharp contrast indicates that SHIB’s losses have nearly doubled the overall crypto market’s average decline.

When a major asset like SHIB falls significantly more than the market average, it often attracts savvy investors seeking bargains.

This underperformance signals a high potential for a major rebound if bullish momentum returns. With SHIB’s current oversold status relative to the market, its undervaluation could push the token higher in buyers’ priorities as recovery unfolds.

Bullish Traders Gain Ground as Seller- Fatigue Sets in

After six consecutive days of losses, on-chain data shows that the sell-side pressure on SHIB is beginning to wane. This could spark a short-term price rebound, as exhaustion sets in among sellers.

IntoTheBlock’s aggregated order books chart below, tracks the real-time value of all active Buy orders and Sell orders listed for a particular crypto asset across recognized  crypto exchanges.

As of October 3, the aggregated order books from key exchanges show Shiba Inu Buy Orders at the 5% bid depth currently sums up to 1.39 trillion SHIB, whereas Sell Orders stand at 894.43 billion SHIB at the same level. This reflects a supply shortfall of 495.57 billion SHIB in sell orders, equating to approximately $7.9 million.

This imbalance in favor of buy orders indicates potential bullish momentum, as buyers seem ready to scoop up SHIB at these discounted levels.

If traders interpret this excess demand as a market bottom signal, new entrants from the sidelines could further increase buying pressure, pushing SHIB’s price upward in the days ahead.

Shiba Inu Price Predicton: $0.000015 Support Remains Firm

Following the 30% losses over the last six days, SHIB bulls have shown a clear intention to defend the $0.000015 support level. As seen in the daily timeframe, SHIB rebounded sharply on October 4. By holding this crucial support zone, Shiba Inu’s price seems primed for an early recovery toward the $0.00002 mark.

If geopolitical tensions ease and the Non-Farm Payroll (NFP) data expected on October 4 turns dovish, SHIB could enter a major rebound phase.

Key technical analysis indicators also point toward possible SHIB price reversal.
Exponential Moving Averages (EMA), The 50, 100, and 200-day EMAs, displayed as resistance on the SHIBUSD daily chart, signal a bearish trend.

However, a break above the 50-day EMA ($0.0000161) could indicate that bulls are regaining control.

Furthermore, the Relative Strength Index (RSI) is hovering around 50.78, indicating that SHIB is neither overbought nor oversold. This neutral position suggests potential for upside if bulls gain momentum.

In terms of short-term projections, Shiba Inu price has strong immediate support at $0.000015, while key resistance stands at $0.000016. A close above the resistance could propel SHIB back to the $0.000020 zone, especially if geopolitical risks abate and market volume surges.

In conclusion, while Shiba Inu’s price has faced substantial headwinds recently, on-chain and technical data suggest a potential reversal may be on the horizon. Traders should watch for buy-side momentum to strengthen, and geopolitical developments could further influence SHIB’s next move.