On Monday, a slight decline in Bitcoin 
$78,262’s price to around $90,000 triggered a cooling effect in the cryptocurrency market. This retracement is perceived as a natural pullback following a rally aimed at recovering the exhausted bullish momentum. Meanwhile, many traders remain optimistic about the market’s recovery, with several major altcoins, including Shiba Inu (SHIB), preparing for a potential rebound.
Current Status of Shiba Inu Price
As the news was being prepared, Shiba Inu experienced a decline of approximately 5.7%, trading at around $0.0000263. According to CoinGecko, SHIB’s market capitalization reached $15.58 billion, with a 24-hour trading volume of $2.53 billion.
Last week, Shiba Inu surged from $0.00001685 to $0.00003, marking an 80% increase. Daily chart analyses suggest that this recovery may lead to the formation of a bullish reversal pattern known as an inverse head and shoulders. This formation indicates a market beginning to attract demand when the middle dip is lower than the others, signaling a potential uptick.
SHIB’s MVRV Analysis Indicates Correction Signal
According to Santiment data, Shiba Inu’s 30-day MVRV ratio has risen to 25%. This indicates that short-term traders are starting to realize profits, suggesting that profit-taking may be imminent. Despite today’s bullish market, SHIB fell by 6% to $0.0000261, indicating that the right shoulder of the inverse head and shoulders pattern may be forming, viewed as the last pullback before a breakout.
A possible market correction could lead SHIB to drop another 20%, retesting the support level at $0.00002074. This level aligns with the 20-day EMA support, presenting a crucial turning point for buyers.
Expectations for November: Is a New Rally Possible?
In the second half of November, there is potential for the market to regain its bullish momentum. However, if the market remains resilient, SHIB’s price might surpass the $0.00003 resistance and progress towards $0.000035. By the end of the month, an increase to $0.000038 could be anticipated.
Traders should closely monitor support and resistance levels to observe market movements. During this period, paying attention to market data and technical indicators will be beneficial for creating careful strategies.
