The Bollinger Bands on the daily Shiba Inu chart indicate a weakening downtrend, with market experts setting breakout targets at $0.00006, suggesting a potential price surge. At present, SHIB trades at a crucial juncture, attempting to recover from the persistent downtrend that began on May 4. Earlier in May, SHIB aimed to rebound from a 27.16% decline in April, the steepest monthly loss since May 2022.
The recovery attempts encountered a setback on May 4, leading to another decline. However, this downward momentum halted on May 13 when SHIB retested the lower Bollinger Band, dropping to $0.00002156. The Bollinger Bands now suggest that SHIB could be preparing for a breakout that might end the prolonged downtrend.
Traders use Bollinger Bands to identify overbought or oversold regions, which helps detect potential trend reversals. A retest or break below the lower band typically signals that an asset is entering oversold territory, often preceding a price rebound.
After the retest, Shiba Inu showed a notable recovery, supported by Bitcoin’s rebound. However, SHIB faced resistance upon reaching the upper trendline at $0.00002588. For sustained upward momentum, Shiba Inu needs further bullish support to breach the upper trendline.
A closer look at the daily chart reveals contracting Bollinger Bands, indicating reduced volatility. This pattern suggests an imminent sharp price move. Data from Santiment shows Shiba Inu’s volatility dropped to 0.003097 on May 12, the lowest in three months. The last similar drop in volatility was on February 25, which preceded a significant surge in SHIB’s price.
As of press time, Shiba Inu trades at $0.00002487, aiming to retest the $0.000025 zone. The bulls are leveraging the growing accumulation trend among shark and whale addresses to drive this breakthrough. These addresses have accumulated 4.35 trillion SHIB since March.
Amid these bullish indicators, market experts expect Shiba Inu to reach $0.00005. SHIB Knight believes that a trend reversal could push SHIB to $0.00006, a 147% increase from its current value.
Moreover, in a notable development, a crypto whale made a $3.2 million profit from Shiba Inu after holding for 2.6 years. Spot On Chain reported that the whale initially purchased 199 billion SHIB, valued at approximately $1.68 million, between October 2021 and September 2023. The whale recently transferred all SHIB holdings to Coinbase, realizing a 191% profit.
This profitable exit comes amid ongoing accumulation by other large holders. Since March, whales and sharks have added over 4.35 trillion SHIB to their balances, driven by the coin’s price surge in late February. Meanwhile, some investors are shifting their profits to other assets, such as Wrapped Bitcoin.
