Shiba Inu Below Key Support Level, Potential for Price Recovery

Shiba Inu currently trades below a crucial support level and reclaiming it may pave the way for further recovery to much higher levels.

Specifically, Shiba Inu trades below the $0.00000830 demand zone following a recent sideways trend. With a recovery push ongoing, reclaiming this level sets the prominent meme coin up to retest higher resistance areas.

• Shiba Inu currently trades below a crucial support level and reclaiming it may pave the way for further recovery to much higher levels.
• Specifically, SHIB trades below the $0.00000830 demand zone following a recent sideways trend.
• Shiba Inu is gaining ground against major altcoins amid a contrarian play to the broader market trend.
• The support between $0.0000084 and $0.0000083 serves as a base, and bulls have defended this area in the past.
• If Shiba Inu rebounds to this support, it could retest higher resistance levels.

Notably, Shiba Inu is gaining ground against major altcoins amid a contrarian play to the broader market trend. CoinMarketCap data shows that in the past 24 hours, it has increased by 2.60%, becoming the second-best performer among the top 25 cryptocurrencies by market cap within this period.

Yet, the token trades below the key support area around $0.00000830. The 15-minute chart shows that SHIB hovered around this level for several days before the tariff fallout between the US and the EU sparked a sharp decline.

The meme coin dropped from $0.0000084 late on January 18 to $0.00000745 in early January 19, marking an 11% decline in minutes. While the token has attempted to recover, rallying to $0.000080 at the time of writing, it still sits below this support.

Meanwhile, the support between $0.0000084 and $0.0000083 serves as a base, and bulls have defended this area in the past. Moreover, SHIB has bounced back from these demand areas several times recently, further underscoring its importance.

For context, Shiba Inu recovered after visiting this area on January 12, bouncing 10% from its lows of $0.00000828 to $0.00000912 the next day. A similar move occurred on January 15 before retracing to recent lows.

The price action suggests that reclaiming this level could pave the path for a sustained push to higher prices if momentum persists. However, SHIB has to climb by more than 3% from its current price to stand a chance at this.

If Shiba Inu rebounds to this support, it could retest higher resistance levels. The immediate supply zone is $0.00000860 to $0.00000880, while subsequent supply zones sit around $0.0000090 and $0.000010.

While Shiba Inu is showing strength, it still relies heavily on the broader market trend. Hence, Bitcoin and other major altcoins need to balance before any significant move.

Moreover, there is no guarantee that Shiba Inu will reclaim the support level, as market uncertainties swell. Even if it does, it is still not certain that the meme coin will target higher prices.