Shiba Inu Defends Key Support for 7 Weeks, Can it Stage a Recovery

Shiba Inu maintains a position above the support at $0.00001, looking to leverage it for a breakout from the current downtrend.

Shiba Inu (SHIB) has witnessed a series of occasional hurdles to its breakout campaign over the past few weeks. However, the asset has retained the crucial support level above the $0.00001 price point. SHIB is currently looking to leverage this point for a potential breakout.

Crypto Rand, prominent crypto trader and CEO of Blockground Capital called attention to this pattern in a tweet today, highlighting Shiba Inu’s resilience against further declines. 

$SHIB defending the main horizontal support but unable to recover for now: pic.twitter.com/CnRG19tsGb

— Crypto Rand (@crypto_rand) April 27, 2023

A chart by Crypto Rand shows that, following the FTX-induced collapse, SHIB faced fierce resistance at the $0.000008 and $0.000009 levels throughout November and December of last year.

However, SHIB leveraged the earliest market-wide rally observed this January to stage a breakout from these points. SHIB eventually flipped $0.000008 and $0.000009 into support, launching to a high of $0.00001575 on Feb. 4 before facing a new resistance point at this level.

The fierce opposition faced at $0.00001575 triggered persistent declines, leading to a drop of 38% to $0.00000965 on March 10. Nevertheless, the asset leveraged the $0.000010 as support and has been defending this support level since then. SHIB is also looking to engineer a breakout to $0.000015 to flip this zone into support as well.

Shiba Inu Continues to Consolidate

However, Crypto Rand confirmed that SHIB has been unable to stage this breakout since last month. This is due to the lack of support regarding favorable updates, especially Shibarium. SHIB has also not received ample support from the broader market, as the latest market-wide rally was short-lived.

The asset has continued to trade at a range, and Crypto Rand asserted last Thursday that Shiba Inu could soon face the end of its consolidation. According to him, SHIB is “getting closer to the final squeeze.” 

$SHIB rejected on the main horizontal resistance but holding the local uptrend support, getting closer to the final squeeze: pic.twitter.com/pYSq1UZd66

— Crypto Rand (@crypto_rand) April 20, 2023

Shiba Inu is currently changing hands at $0.00001022. The asset’s latest campaign which saw it soar by 6% yesterday was immediately snuffed out by the bears. Consequently, SHIB is down 2.76% in the past 24 hours.