Is the Shiba Inu (SHIB) Price Bottom In? Analyst Points to Two Key Levels for a Possible Bounce

Shiba Inu has been going through a rough stretch recently as the broader crypto market cooled off. After several attempts to recover, the meme coin slowly moved lower and eventually tested a support zone that many traders had been watching closely. Selling pressure pushed the SHIB price down into the $0.00000520–$0.00000544 range, which has acted as an important demand area in the past.

This move happened during the March 5 correction, when many altcoins also pulled back. At that point, it looked like the SHIB price might continue sliding lower. Instead, the market reacted quickly once it touched that support zone.

The buyers have now entered the market and have helped the price of SHIB go past the $0.0000055 mark. The recent movement has helped the token regain the attention of the market’s traders, and the token could now be gearing up to move past higher levels of resistance.

One recent analysis shared by SwallowAcademy highlights two price levels that the SHIB price could test next if the recovery continues.

Signs of a Local Bottom on the SHIB Chart

Looking at the chart more closely, the SHIB price had been trending downward for several days. The market kept forming lower highs and lower lows as it slowly moved toward the support area around $0.00000520–$0.00000544.

That zone is marked on the chart as a local bottom area, where buyers had previously stepped in. When the SHIB price returned to that region, the market reacted in a similar way again. The decline slowed down, and the price quickly bounced back upward.

Support zones like this often show where buyers are willing to defend the market. After holding above the lower boundary of the zone, the SHIB price moved back toward the $0.0000055 demand area, which is now acting as short-term support.

Another detail visible on the chart is the group of moving averages sitting above the price. For several sessions, the SHIB price stayed below these lines, which made them strong resistance during earlier bounce attempts. 

After the recent rebound, the market is now trying to stabilize just underneath those levels. If the SHIB price manages to stay steady here, the next step could be a move toward nearby resistance zones.

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Resistance Levels Traders Are Watching

The SHIB chart indicates two key levels that could shape the next move for the SHIB price.

The first target sits around $0.00000586. This level has been a temporary stop for rallies that have lost steam. Should SHIB manage to go past this mark, it could potentially open the gates to the next resistance level.

The next significant resistance level for SHIB is at the $0.00000644 mark, which is a higher level for the coin.This zone lines up with earlier price reactions and would likely draw a lot of attention if the market moves back toward it.

The arrows drawn on the chart outline a possible measured move scenario. In this setup, the SHIB price spends some time consolidating near the reclaimed support level before gradually climbing toward those two resistance targets.

Momentum indicators indicate that the market is finding its footing. The RSI has rebounded from a near oversold condition, which is a positive indicator for the market.

What Comes Next for the SHIB Price

Currently, the short-term direction depends on the sustainability of this reclaimed zone of support. The minuscule but important zone of $0.0000055 has already been tested and has attracted buyers, which makes it an important psychological barrier.

If the price continues to hold above this mark, the price could again test the $0.00000586 mark. Success at this level could make the $0.00000644 level a possible target.

If the SHIB price falls below the zone of support, the $0.00000520 to $0.00000544 zone could be tested, which has been the price cap until now.

Currently, the buyers have been able to sustain the zone of support. Time will tell if the price can sustain the trend and reach the levels that analysts are looking at.

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The post Is the Shiba Inu (SHIB) Price Bottom In? Analyst Points to Two Key Levels for a Possible Bounce appeared first on CaptainAltcoin.