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Shiba Inu is holding above a weekly support zone nicely and could recover from here if the current selling pressure subsides.
Notably, recent negative price trends have brought Shiba Inu to this key support zone. The token is down nearly 5% in the past 24 hours, as meme coins suffer severe price setbacks amid the broader market drop.
Key Points
- Shiba Inu is holding above a weekly support zone nicely and could recover from here if the current selling pressure subsides.
- While other cryptocurrencies like Bitcoin and Ethereum made new lows, the meme coin has held above its January 31 bottom of $0.00000616.
- This trend suggests price consolidation around a key support area at $0.0000060.
- If Shiba Inu continues to hold current support and selling pressure subsides, a bullish reversal could occur.
Shiba Inu at Significant Weekly Support
Today, $SHIB dropped to a low of $0.00000640, keeping it on track for its third successive downtrend day. While other cryptocurrencies like Bitcoin and Ethereum made new lows, the meme coin has not broken below its January 31 bottom of $0.00000616.
This trend suggests price consolidation around a key support area at $0.0000060, which aligns with a recent analysis from MMBTrader. The commentator noted that $SHIB has held its ground around this significant support area despite heavy selling pressure. According to him, this is positive for the token, as it shows potential accumulation.
Notably, data backs this accumulation theory. Specifically, exchange reserves have dropped slightly in the past 24 hours, as whales move $SHIB away from trading platforms to self-custody wallets. A negative exchange inflow also confirms this, indicating that withdrawals overshadowed deposits in major platforms.
What Does This Mean for Shiba Inu
MMBTrader remained positive about what could develop for Shiba Inu if it continues to hold this weekly support. Specifically, he noted that a bullish reversal could occur for the token, initiating a “meaningful upward move.”
Further, he noted that the consolidation structure suggests an initial target of up to 100% from the support area. A twofold increase would take $SHIB past the $0.000010 mark, reaching his target of $0.00001325, according to an accompanying chart.
The analyst’s chart also highlighted great Shiba Inu weekly pumps if bullish momentum is sustained. Some of his targets are a 368% rise from the support level to $0.0000336, a 666% increase to $0.0000548, and, subsequently, a 1,016% surge to $0.0000730.
Confirmations and Key Caveat
Meanwhile, the analyst noted that this move would only be possible if the current sell-off subsides and the support holds. While bulls have shown accumulation intent in the past 24 hours, sustaining this trend would be crucial to keeping $SHIB the needed boost.
Bitcoin also needs to stay stable. The crypto leader printed new lows today, falling below $70,000 for the first time in over a year. If price weakness endures, it would only be a matter of time before Shiba Inu follows suit.