The Shiba Inu meme coin has been among some of the best performers after rising over 25% in the month of July so far. This seems to have set it on a course for higher prices as it moves to possibly retest yearly highs. However, not everyone is completely bullish and convinced about the potential breakout opportunity of Shiba Inu. One crypto analyst in particular doesn’t see the altcoin going much higher and has predicted a major crash coming.
Shiba Inu Could Crash Back Down Again
In the analysis posted on Tradingview, the pseudonymous crypto analyst points out the fact that the Shiba Inu price is currently trading at a major resistance zone. At the time of the analysis, the price was trending at $0.000014 and had set its sights on the resistance above $0.00001432. This made it the level to beat, and alternatively, it is where the bears have been mounting their counterattack.
As the analyst explains, the Shiba Inu price being so close to this level suggests that a resistance and possible bear down is coming. In this bearish scenario, the crypto analyst does see the price failing from here, leading to a minor bounce back and eventual crash back to previous support levels.
Going by the analyst’s charts, the Shiba Inu price is likely to dump back to $0.00001299, where there is more support for the meme coin. All of this is charted on the 2-hour timeframe, suggesting a short-term turnaround for this bearish thesis.
However, on the flip side, if the Shiba Inu price does successfully beat the second resistance, then it could invalidate the analyst’s bearish thesis. A continued uptrend in the crypto market will likely drag the Shiba Inu price along with it, leading to higher highs on the 2-hour timeframe as a result.
SHIB Volume Stays Muted
Amid the calls for a crash, the Shiba Inu trading volume has remained quite muted during this time. Although it has seen some increase in July from its June lows, the volume has declined toward the end of June. At an average of $180 million daily trading volume, it suggests that interest in the meme coin is still low among crypto traders.
A similar trend is seen in its open interest, which has fallen below the $300 million mark once again. As crypto investors turn toward newer meme coins for the possibility of more upside, the Shiba Inu price could remain muted for a longer period of time.
Featured image from Dall.E, chart from TradingView.com
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