Analysis of the token shows that it will take more than bullish sentiment for the price to surpass its all-time high.
- In a highly bullish case, SHIB may rally to $0.00038 but resistance at $0.000027 might invalidate the run. Shiba Inu’s network was undervalued, suggesting that the price could recover.
Deleting one more zero from its price means Shiba Inu [SHIB] would surpass its all-time high. Can it achieve it? This is one question that holders of the token have been asking themselves.
At press time, SHIB’s price was $0.000023.— 73.02% down from $0.000088 which was the peak it hit in October 2021. Furthermore, this decrease was a 3.20% fall in the last 30 days.
However, SHIB KNIGHT, an analyst who has been very bullish on the token opined that the price can hit $0.0001. According to his post on X, he mentioned that Shiba Inu could reach the target within a short period.
Bears are not giving up
The last time SHIB erased a zero from its price was in February. At that time, AMBCrypto reported how the price moved from $0.0000095 on the 22nd.
By the last day of the month, SHIB’s price had hit $0.000012 before its incredible surge to $0.000035 within the first 10 days in March.
However, it is important to note that the market condition was extremely bullish during that period. Recently, the euphoria has been non -existent, suggesting that it could be challenging for SHIB to reach such heights.
AMBCrypto found a metric that supported the invalidation of the thesis. This was the Bulls and Bears indicator provided by IntoTheBlock.
Source: IntoTheBlock
As of this writing, the difference between Bulls and Bear was 4 (in favor of bears). This indicator is important to Shiba Inu’s price because it tracks the number of addresses that have bought or sold 1% of the token’s trading volume.
When bulls overcome in this regard, it suggests a possible price increase for the token. But since bears dominated with selling pressure of 1% volume, it implies that SHIB could experience another decline.
Beyond that, it is also necessary to analyze the price potential from a technical perspective. On the daily chart, the SHIB was without a clear direction as the price kept trading in a tight range.
Is a 64% increase possible?
First, AMBCrypto identified a support at $0.000022 which bulls have been defending. However, SHIB’s price could be on the verge of slipping below the price.
If that happens, the price of the token might find itself trading at $0.000018. Should this happen, then the token might lose 23.92% of its press time value.
Source: TradingView
To the upside, there was resistance at $0.000027. A bounce to this level and breakout could lead SHIB to $0.000038 (a 64.01% increase).
In addition, the Network Value to Transaction (NVT) ratio was 153.65. This was a low reading from the period SHIB went on its month-long rally. High values of the NVT ratio indicate that a network is overvalued relative to the transactions.
Source: Glassnode
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Thus, the low NVT ratio suggest that Shiba Inu’s network was undervalued when compared with transactions.
Concerning the price, this ratio could validate the predicted increase in the mid-term. However, the price of the token might keep swinging sideways in the short term, and $0.0001 might be an option anytime soon.
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