An experienced market analyst says a double bounce carried out by Shiba Inu on a critical support level points to high gains for the token.
With the recent crypto market drawdown, the price of Shiba Inu hit new lows of $0.0000238. Amid the collapse, the cryptocurrency retested the $0.0000238 support level twice, providing a strong indication of strength at this level.
Analyst SHIB Knight spotlighted this development, noting that it signifies strong demand for Shiba Inu at those levels. In essence, many market participants consider $0.0000238 a fair value price for Shiba Inu.
Meanwhile, Shiba Inu had earlier attempted to break the resistance around $0.0000328 but met little success. However, with the $0.0000238 now confirmed as main support, Shiba Inu has a greater chance of recovering to new highs, the analyst explained.
He believes the range between $0.0000238 and $0.00003281 is an accumulation channel for Shiba Inu. SHIB Knight predicts a breakout to new highs once this accumulation ends.
Let’s check $SHIB Weekly Chart:
It bounced on 2380 support twice, meaning people are buying at this level. This is good for long term, as it helps to build a solid support.
It rejected once at 3281 and haven’t touched that resistance yet.
Maybe some more accumulation in 2380 -… pic.twitter.com/tqsdOQupcQ
— $SHIB KNIGHT (@army_shiba) March 21, 2024
Will Shiba Inu Recover to New Highs?
The big question is whether the cryptocurrency can recover to its previous highs. At the peak of the last market cycle, the cryptocurrency traded as high as $0.00008845 and has already managed a peak of $0.000044 this cycle.
Banking on the recent uptrend, some experts forecast that Shiba Inu will bounce back to new highs before the Bitcoin halving. Others see Shiba surpassing its previous all-time high soon, identifying the recent lows of $0.00002249 as a buying opportunity.
Since the latter prediction, Shiba Inu has recovered with a 7% gain. The cryptocurrency trades at $0.0000271 at the time of writing, with its trading volume hovering around $1.77 billion, the 12th highest in the entire crypto market.
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