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Amid the Shiba Inu collapse, market analyst Xanrox has identified an entry price aligning with the Fibonacci 0.618 level, as he anticipates an imminent 300% surge.
Shiba Inu is one of the victims of the latest market downtrend that has triggered retests of previous support levels. SHIB has collapsed by a massive 23% over the past seven days, relinquishing multiple psychological levels to the bears.
Despite this downward spiral, analyst Xanrox remains bullish on Shiba Inu’s potential, expecting the crypto asset to register a massive price rally in the near future. Xanrox first published his analysis on March 17, following SHIB’s 15% intraday slump the previous day.
He revealed that the asset’s price movements since June 2023 have followed a five-wave Elliott Wave structure. According to him, the token is currently trading within the third wave.
Attractive Shiba Inu Buy Opportunity
Data from Xanrox’s chart indicates that Shiba Inu could continue witnessing a bearish trend until market dynamics change. The change in market dynamics would begin when SHIB successfully forms a bullish flag following a drop in price to the 0.618 Fib—retracement level.
Notably, Xanrox noted that this Fibonacci 0.618 level aligns with the $0.00002249 price. As a result, the analyst believes this price level would mark a good buy opportunity for Shiba Inu should the cryptocurrency drop to this point.
The reason behind this rationale is an expectation for Shiba Inu to record a price uptick once it hits the Fib. 0.618 ($0.00002249) at the end of the bullish flag. He expects the asset to surge to $0.00005724, completing the third Elliott Wave.
After this, a drop to $0.00004159 could follow, resulting in the conclusion of the fourth wave. Subsequently, the chart suggests that Shiba Inu would then resume its uptrend in the fifth wave, surging to a high of $0.00008588, which marks a 317.42% increase from the lowest spectrum of the expected bottom.
Shiba Inu to Drop Further Before Imminent Reversal
In a follow-up analysis on March 18, Xanrox confirmed that Shiba Inu only has one potent resistance level on the weekly chart, which is the $0.00008845 ATH. The Crypto Basic disclosed this in a previous report, stressing that the asset faces minimal resistance below the $0.00008845 high.
Since the initial post, Shiba Inu has continued to drop as expected. SHIB has been down 8% since then, but Xanrox awaits further decline until it reaches the $0.00002249 price. As Shiba Inu currently trades for $0.00002515, it would need to collapse by 10.5% more to reach the anticipated entry price of $0.00002249.
Technical data reveals that Shiba Inu’s daily Stochastic RSI has declined, currently sitting at 2.07. The persistent declines show that SHIB’s strength is failing, but the 2.07 value suggests that the asset is massively oversold and could be due for a potential price reversal.
