Historical context supports an analysis suggesting that Shiba Inu could explode from here as it retests a crucial support area.
Notably, the analysis came from Crypto Patel, who forecasts that Shiba Inu could reverse recent price underperformance. Notably, SHIB continues to struggle to sustain an uptrend amid broader market uncertainty.
Shiba Inu Back at Support
After rallying to a high of $0.00000952 last week, Shiba Inu again caved to a Bitcoin-inspired higher price rejection. The momentum shift saw it retrace 12.3% to close the week at $0.00000834. Essentially, Shiba Inu could not build on its 6.6% gain two weeks ago, which was its first green weekly candle in five weeks.
Top analyst Crypto Patel highlighted that the close pushed the token back to the “mega support” between $0.0000080 and $0.0000060. Interestingly, he suggested that this could be a bullish development for SHIB, citing historical context. He specifically noted that the meme coin has pumped from the zone at each retest, suggesting a similar outcome could emanate from this retest.
Bounce in Three Retests
An accompanying chart further provided a perspective on the importance of this level to SHIB’s trend. The token retested the $0.0000080 to $0.0000060 support in July 2021 and consolidated around the area for months. However, it eventually broke out in early October 2021, rallying over 1,237% to its all-time high of $0.0000885.
A similar event occurred in June 2022, when SHIB dropped back to the support, hitting a low of $0.00000714. Bulls again stepped in to drive the token to its August 2022’s high of $0.0000180, representing a 152% increase.
Additionally, Shiba Inu retested the area again in June 2023. Specifically, after a slight push towards $0.0000113 in August 2023, it fell back to the support in October 2023. What followed was a breakout and a subsequent 575% increase to March 2024’s peak price of $0.0000456.
Possible Targets if Bullish Scenario Repeats
Citing these previous instances, Crypto Patel provided four possible price scenarios for Shiba Inu if it holds the $0.0000060 and $0.0000080 support levels this time. The first is a rally from the lower support boundary ($0.0000060) to December 2024’s high of $0.0000334, culminating in a 456% growth.
The second target is a rebound from $0.0000060 to its 2021 peak of $0.0000885. The move represents a 1,375% surge from $0.0000060 and a 943% increase from the current market price of $0.00000848.
Notably, the third and fourth scenarios will play out if SHIB rallies from the upper support boundary of $0.0000080 to the March 2024 and October 2021 peak prices. A rally to $0.0000456 from here would mark a 470% increase, while an uptrend to its all-time high of $0.0000885 represents a 1,006% growth. Remarkably, Crypto Patel suggested this rally could happen in the next six months.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
