Shiba Inu Tests Support: Is Now the Time to Buy?

Shiba Inu (SHIB) has seen a significant decline recently, correcting 11.80% last week alone, marking its fourth consecutive week in the red. However, an analysis suggests potential buy opportunities as the price approaches key support levels. The overall market sentiment remains bearish, yet there are signs that SHIB might bounce back if it can hold critical support levels.

Key Takeaways

Shiba Inu (SHIB) has retraced 20% since November 1 and is down 62% year-to-date.
SHIB's recent analysis highlights a potential buy opportunity as it stabilizes around key support levels.
A bullish reversal may be possible if SHIB can reclaim a resistance level around $0.00000890.
The stability of Bitcoin is crucial for any recovery in SHIB's price.

Shiba Inu Price Analysis

SHIB’s Recent Performance and Support Zone

In the past week, Shiba Inu's price declined significantly, with a correction of 11.80%, resulting in four consecutive weekly losses. Over the same period, SHIB has fallen 20% since November 1, bringing its year-to-date performance to a staggering negative 62%.

A recent analysis by Lingrid from TradingView on November 22 pointed out that SHIB might present a buying opportunity due to its interaction with recent support levels. Last week, SHIB hit a low of $0.00000755 as market conditions remained bearish. However, buyers actively defended the support range between $0.00000741 and $0.00000767, leading to a modest rebound to the current price of $0.00000803.

Lingrid noted that this bounce suggests early buying activity as Shiba Inu forms another lower low within the trend's lower boundary. This sharp upward movement has raised hopes that SHIB could eventually reach higher prices through an upward correction. Despite the overall bearish market, Lingrid believes that the current situation offers a potential entry point for traders.

Potential Price Targets

According to Lingrid, Shiba Inu may aim for a rally of approximately 11.2% to reach $0.00000890, which is seen as a likely scenario if liquidity increases below the support level. For this upside potential to materialize, SHIB must maintain the trend above the demand zone of $0.00000741 to $0.00000767.

Importance of Bitcoin Stability for Price Recovery

The market analyst emphasizes the significance of reaching the $0.00000890 level for Shiba Inu’s technical prospects. This resistance aligns with the descending channel's trendline, and reclaiming this zone could trigger further upward movements. Conversely, failing to recover this area might keep SHIB trading around lower support levels.

Should selling pressure escalate, there is a risk of SHIB breaking down beyond the channel's lower boundaries, leading to even lower price points. The potential for SHIB to achieve the projected 11.2% rally largely hinges on sustaining support above $0.00000767 while Bitcoin stabilizes in the market.

The pattern of four consecutive weekly declines reflects ongoing selling pressure that must be reversed for a bullish scenario to unfold. Traders watching for changes in market dynamics will be attentive to whether SHIB can establish higher lows while remaining above the critical support zone.