SHIB, the popular meme cryptocurrency, experienced a sharp 8% decline during Monday’s U.S. trading session. This downturn coincided with Bitcoin dropping below $65,000, recording a 3% intraday loss. The meme coin sector’s sensitivity to market shifts suggests SHIB may retest support levels. Could the “Uptober” sentiment spark a major reversal for Shiba Inu?

Will Shiba Inu Price Surge Again in October?

Cryptorank analytics forecasts a potential 283% average return for Shiba Inu in October, hinting at a extended recovery. While Q4 looks promising for a rally, triple-digit gains may be overly optimistic given SHIB’s extraordinary 2021 performance. Fading interest in meme assets and increased competition make a repeat of such dramatic gains less likely.

However, data from Santiment shows 61% of SHIB supply remains in top addresses, indicating major investors are holding. Additionally, SHIB’s supply on exchanges has decreased significantly this year to $144.4 trillion, suggesting reduced selling pressure and aligning with a potential price recovery.

SHIB Price Indicates Possible 9% Drop Before Reversal

Since last weekend, Shiba Inu’s price corrected 18% from $0.0000217 to $0.0000178. This bearish turn likely stems from the broader market pullback as Bitcoin fell below $65,000. Continued selling could push SHIB down another 9% to test support at $0.000016.

This level coincides with a bullish crossover of the 20-and-100-day exponential moving averages after 100 days, potentially reigniting bullish momentum. A reversal here could form an Inverted Head and Shoulders pattern on daily charts, consisting of three lows with the middle “head” being lowest. If this pattern holds, SHIB could bounce from $0.000016 to challenge resistance at $0.000022.

Conversely, a breakdown below $0.000016 would invalidate this bullish scenario, as buyers would lose EMA support.

Frequently Asked Questions (FAQs)

1. Can Shiba Inu repeat its massive 2021 surge this October?
While a significant recovery is expected in October, with a projected 283% return according to Cryptorank, a repeat of the 2021 surge may be overly optimistic due to declining interest in meme assets and growing competition.

2. What price levels should SHIB investors watch?
SHIB could experience a 9% drop to retest support at $0.000016, which coincides with a potential bullish crossover of the 20-and-100-day EMAs. A successful rebound could see SHIB challenge the $0.000022 neckline resistance.

3. What do on-chain metrics indicate about SHIB holder sentiment?
According to Santiment data, SHIB’s supply in top addresses remains at 61%, indicating that major investors are adopting a HOLD strategy.