Shiba Inu recently tested a key support level but has since recovered rapidly, building momentum for a bounce to measured targets.
As the broader crypto market shows notable uptrend momentum, Shiba Inu is looking to leverage this trend. Notably, the lower-timeframe chart shows the meme coin is already gaining strength for this move after holding local support.
Key Points
- Shiba Inu tested a key support level and has since recovered rapidly, building momentum for a bounce to measured targets.
- SHIB has retested the local bottom between $0.00000544 and $0.00000520, triggered by the March 5 corrective move.
- However, the token quickly rebounded from the local support and has reclaimed the $0.0000055 demand area.
- Shiba Inu could record a measured price move after a successful retest of the local support to two notable resistance areas.
Shiba Rallies Then Dumps
Slight bullish momentum returned to the market two days ago, as Bitcoin rallied to $74,000, a price last seen in early February. Shiba Inu grew too, but not as strongly as the pioneering cryptocurrency.
It grew 4% on March 4, reaching a high of $0.00000586 before closing around $0.00000570. Meanwhile, this move was short-lived, as SHIB has since retraced considerably. A 3% drop yesterday saw it drop back to the $0.0000055 region.
Beneath these price swings, market commentator SwallowAcademy has identified what the meme coin could do next. One of his possible price scenarios is playing out neatly, and the target is well above the current price level.
Bounce from Local Support
The Thursday analysis highlighted two possible scenarios, one of which was a bounce from the smaller support area around the $0.0000055 region on the 1-hour timeframe. However, this did not happen as bears pushed prices lower.
Nonetheless, the second scenario is in play as the token has retested the local bottom between $0.00000544 and $0.00000520. The downward trend on March 5 triggered a retest of support, but SHIB did not stay there for long.
It quickly rebounded from the local support and has reclaimed the $0.0000055 demand area. This aligns with SwalowAcademy’s prediction, which expects a further uptrend from the current price levels.
Set Shiba Inu Uptrend Targets
The accompanying chart shows a measured price move after a successful retest of the local support to two notable resistance areas. The closest target is $0.00000586, aligning with the March 3 intraday high. The token is just 5% away from this target at the current market price of $0.00000558.
Breaking above the resistance would see Shiba Inu retest the second target at $0.00000644. This represents a 15.6% increase from here and closely aligns with the area where the meme coin peaked on February 26.
Interestingly, the analyst labelled these “smaller targets,” suggesting that a much larger bullish move could develop on higher timeframes if momentum sustains. Recall that he predicted earlier that SHIB would surpass $0.0000085, citing a bullish formation.
Notably, these moves are not guaranteed, as bears remain in full control of the market. The broader market condition would have to improve for SHIB to have a chance at such an uptrend.
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