Gushiken Yona
Shiba Inu (SHIB) is flashing bullish signals as October approaches, sparking excitement among traders and investors. With over 55% of SHIB holders currently “in the money,” meaning their holdings are profitable at the current price, the popular dog-themed altcoin appears poised for a potential “Uptober” surge.
Elliott Wave and Fibonacci Point to Higher Shiba Inu Highs
A SHIB/USDT chart on Binance shared by crypto analyst BigMike7335 (@Michael_EWpro on X), which incorporated Elliott Wave analysis and Fibonacci retracement levels. The Elliott Wave theory, a form of technical analysis that identifies recurring patterns in price movements, suggested that SHIB was nearing the end of a corrective wave (wave 4) within a larger upward trend. This pointed towards a potential breakout in the next wave (wave 5), which could push SHIB to the $0.000024 range, a significant jump from its current price.
This bullish outlook was further reinforced by the confluence of Fibonacci retracement levels. After a recent pullback, SHIB found support near the 0.618 Fibonacci level, a key indicator often associated with potential trend reversals. Traders viewed this as a strong signal for a renewed rally, aligning with the anticipated wave 5 breakout.
Volume and Technical Indicators Add to Shiba Inu Bullish Case
The volume profile on the chart revealed strong support levels between $0.00000780 and $0.00000850. This range acted as an accumulation zone, where buyers stepped in to acquire SHIB at discounted prices, building a foundation for a potential breakout. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also flashed bullish signals. The MACD histogram showed growing momentum, while the RSI remained above oversold levels, suggesting further upward potential.
Holders “In the Money”
Data from IntoTheBlock provided further insight into the bullish sentiment surrounding Shiba Inu. Its “Global In/Out of the Money” analysis revealed that a significant majority of SHIB holders, 55.61% or 751,160 addresses, were “in the money,” meaning they had purchased SHIB at a lower price than its current value. This suggested a strong base of support for the token and reduced the likelihood of a massive sell-off.
A smaller percentage, 1.82% or 24,580 addresses, were “at the money,” meaning they had purchased SHIB at the current price. The remaining 42.57% or 575,100 addresses were “out of the money,” holding SHIB at a loss. However, even this data point offered a glimmer of hope, as it represented potential buying pressure from those hoping to recoup their losses as the price rose.
While the technical analysis and holder distribution painted a bullish picture for Shiba Inu, caution remained warranted. The cryptocurrency market is inherently volatile, and unforeseen events could easily disrupt the anticipated upward trajectory.
Traders and investors are advised to monitor key support levels and manage their risk accordingly. Despite the inherent risks, the confluence of technical indicators, positive holder distribution, and the approaching “Uptober” season created a palpable sense of excitement and anticipation within the Shiba Inu community.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
