thecryptobasic.com 
Shiba Inu hints at a possible recovery after holding key support, potentially targeting the upper range of a price channel.
Shiba Inu (SHIB) ended the week poorly with its 4% decline on Sunday. The downtrend, mirroring a broader market trend, brought its weekly retracement to 7.17%. However, recent price behavior suggests a rebound could be on the horizon for the token.
Key Points
- Shiba Inu hints at a possible recovery after holding key support, potentially targeting the upper range of an existing price channel.
- SHIB ended the week poorly with its 4% decline on Sunday, bringing its weekly retracement to 7.17%.
- Yet recent price action suggests a rebound could be on the horizon for the meme coin, as Shiba Inu has held key support at a lower time frame.
- So long as SHIB continues to trade above this lower-timeframe support, it has a chance of a price recovery.
Shiba Inu Holds Structure
Despite the 7.17% drop last week, Shiba Inu has held a key support. Zooming into the hourly chart, Sunday’s weak price action led the token to retest the demand zone around $0.0000074.
SHIB first dumped to the area following its bearish trend on January 18, reaching a low of $0.00000745. However, it rebounded to close the week at $0.00000787. Since then, Shiba Inu has been range-bound, with several attempts to break out failing.
For context, it reached the channel’s resistance area on January 20, rallying to $0.00000815 before momentum collapsed. Again, it retested the demand zone, with highs of $0.00000817 and $0.00000815 on January 21 and 23, respectively, but met selling pressure.
Consequently, SHIB fell at the closing stages of last week to retest the channel’s lower support trendline. Meanwhile, like last week, Shiba Inu has also recovered from this area, bouncing from a low of $0.00000736 to close the week at $0.00000750.
What Does It Mean for Shiba Inu
So long as SHIB continues to trade above this lower-timeframe support, it has a chance of a price recovery. Moreover, repeated rebounds from this area show that bulls view it as a key price point; hence, they step in to prevent the price from falling below it.
The rebound has also forced a bright start to the week for SHIB. At the time of writing, the meme coin is already up by 2% today. If momentum sustains, then higher prices are possible.
Naturally, SHIB’s first target is the upper range of the channel, around $0.0000082. If the token succeeds in breaking out after this, then larger price spikes would follow. However, this remains purely based on analysis, and there is no guarantee it would happen.
Moreover, prices can still trend lower. If the current upward momentum stalls, SHIB could revisit its current support level. Breaking above creates paves the way for newer lows. However, at this point, the current demand zone recovery spells bullish momentum.
