Lost 82% of market cap...Shiba Inu, surprise counterattack at the edge of resistance?

▲ Shiba Inu (SHIB)/ChatGPT generated image

An analysis suggests that if Shiba Inu (SHIB) breaks through a multi-year downward resistance line, it could enter a strong value re-evaluation phase. The long-term resistance line has continuously suppressed the rebound of Shiba Inu's market capitalization since its peak of $19.7 billion in December 2024, and its current market capitalization has fallen to $3.43 billion.

The Crypto Basic reported on May 21 (local time) that analyst Don shared Shiba Inu's market cap chart and diagnosed that breaking through the multi-year downward resistance line is a condition for Shiba Inu's strong rebound. Shiba Inu is currently the 29th largest cryptocurrency by market capitalization.

Don analyzed that Shiba Inu's market capitalization has been blocked by the resistance line of a downward trend since its peak of $19.7 billion in December 2024. Its current market capitalization has decreased by 82.5% from the peak. The price also fell by the same margin, from $0.00003343 in December 2024 to $0.00000582. He explained that since the circulating supply has barely changed, the decline in market capitalization mirrored the decline in price.

Don stated that if Shiba Inu breaks through the multi-year downward resistance line, it will enter “full send mode.” The first observation zone is a market capitalization of $3.74 billion, which coincides with the end of the diagonal resistance line. For Shiba Inu to reach this zone, an additional $310 million needs to be added to its current market capitalization, corresponding to a price of $0.00000634.

Target zones after the breakout were also presented. The first target market capitalization is $8.54 billion, with a price of $0.0000145 based on a circulating supply of 589.24 trillion SHIB. The final target is a market capitalization of $20 billion, corresponding to a price of $0.0000339. This price is slightly higher than the December 2024 peak. Shiba Inu needs a 483% increase from its current position to reach this price.

However, the market sentiment surrounding Shiba Inu is still cautious. Open interest recently decreased by 3% in the last 24 hours, reaching $49.8 million, indicating a decrease in derivatives activity. Spot inflows to exchanges also increased, with a net inflow of 15.47 billion SHIB recorded in the last 24 hours. The analysis suggests that for Shiba Inu to create a strong upward trend, a breakthrough of the resistance line along with a change in market sentiment is needed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*