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A recent analyst has projected a considerable price rebound for Shiba Inu as a key support area stands strong despite bearish trends.
Bearish pressure has been building for Shiba Inu, the second-largest meme coin by market cap. Despite today’s slight rebound, SHIB corrected by 11.80% last week, recording its fourth consecutive red weekly candle.
The apparent price weakness has seen SHIB retrace by 20% since November 1, with its year-to-date performance at a negative 62% trend. However, SHIB could see a relief bounce, according to a market commentary.
Shiba Inu Holds Support
The November 22 TradingView analysis came from Lingrid. She shared a buy opportunity for SHIB, as its reaction around recent support suggests momentum.
As her earlier analysis predicted, prices moved to the lower support boundary of a descending channel on the 4-hour chart. SHIB dropped to a low of $0.00000755 last week amid a broader market bearish trend.
However, bulls heavily defended the support area between $0.00000741 and $0.00000767, steering a slight rebound to its current price of $0.00000803. Lingrid suggests that the bounce signals early absorption as Shiba Inu makes another lower low to the structure’s lower trendline.
The quick bounce builds her confidence that Shiba Inu would see higher prices in an upward relief pump. While the whole market setup remains largely bearish, she highlights conditions that could spearhead a short-term recovery.
SHIB Buy Opportunity
Notably, the analyst sees the current market level as a buy opportunity zone. According to her, Shiba Inu would target an 11.2% rally to $0.0000089, stating it is the most probable scenario as liquidity builds below the channel’s lower support trendline.
Nonetheless, the rally depends on certain criteria, including a sustained trend above the $0.00000741-$0.00000767 demand zone. Additionally, Lingrid noted that Bitcoin would need to remain stable, as broader market weakness would invalidate the recovery momentum.
Importantly, the market commentator considers this $0.00000890 push imperative for Shiba Inu. The resistance zone aligns with the descending channel’s “trendline,” and reclaiming it would catalyze further uptrends.
However, failing to recapture the area would keep SHIB consolidating around the lower trendline support. This could eventually lead to a breakdown below the channel to much lower price levels.
Ecosystem developments could provide bullish momentum for this rally. For perspective, Shiba Inu’s daily burn rate increased by 859%, suggesting that more tokens are being wiped out from supply.