Shiba Inu's Volatility: 450% Gain Potential or Bearish Challenges Ahead
1min read Shiba Inu (SHIB), the popular cryptocurrency, has been experiencing market fluctuations, with brief periods of recovery followed by further declines. Despite a recent 1.4% gain, SHIB has lost 13.22% over the past seven days and over 24% in the last month. At the time of writing, SHIB is trading at $0.00001363, reflecting ongoing market volatility.
Crypto analyst Javon Marks has highlighted the potential for a significant price increase in SHIB. According to Marks, the token has maintained a long-term breakout pattern since early 2023, when it surpassed a descending trendline. This breakout was confirmed by a retest of the trendline, indicating a shift in market sentiment as buyers gained control and selling pressure diminished. Marks also pointed out a hidden bullish divergence, a technical signal that often precedes upward price movements. Based on this pattern, he projects a price target of $0.000081, representing a potential gain of over 450% from current levels. Marks maintains that, despite recent volatility, the broader trend remains positive, supporting the possibility of sustained price appreciation into late 2025.
Ownership distribution data for SHIB provides additional insight into market dynamics. Over the past month, large holders, or whales, have increased their SHIB holdings by 0.35%. This trend suggests that institutional and high-net-worth investors are accumulating the token, indicating confidence in its long-term potential. Similarly, mid-sized holders have expanded their positions by 0.30%, further strengthening their commitment to SHIB. Conversely, retail participation has declined by 0.67%, suggesting that smaller investors may be exiting the market. Historically, a reduction in retail activity alongside increased whale accumulation signals a shift in ownership toward more stable, long-term holders.
Despite the optimistic outlook, some analysts have identified challenges that could hinder SHIB’s recovery. TradingView analyst Paul Endeo has highlighted several bearish factors, including a potential head and shoulders pattern, weak network growth, and declining institutional interest. Additionally, lower profitability among existing holders has put further pressure on the token’s price. Endeo identified $0.0000147 as a critical support level for SHIB. If the token maintains this level, it could see a 20% rebound