Shiba Inu Retests Support: Is This the Next Buy Opportunity?

• Analyst Lingrid identifies buy opportunity as Shiba Inu defends $0.00000741-$0.00000767 support zone.
• Token declined 11.80% last week marking fourth consecutive red weekly candle recorded.
• Target sits at $0.0000089 representing 11.2% rally from current $0.00000803 price level.

A market analyst has projected a price rebound for Shiba Inu as a key support area holds strong despite bearish trends. Bearish pressure has been building for Shiba Inu, the second-largest meme coin by market capitalization.

Despite today’s slight rebound, SHIB corrected 11.80% last week, recording its fourth consecutive red weekly candle. The apparent price weakness has seen SHIB retrace 20% since November 1, with year-to-date performance at a negative 62% trend.

Support zone shows buying interest

A November 22 TradingView analysis from Lingrid shared a buy opportunity for SHIB, as its reaction around recent support suggests momentum building.

SHIB dropped to a low of $0.00000755 last week amid broader market bearish conditions. However, bulls heavily defended the support area between $0.00000741 and $0.00000767, steering a slight rebound to current price of $0.00000803.

Lingrid suggests the bounce signals early absorption as Shiba Inu makes another lower low to the structure’s lower trendline. The quick bounce builds her confidence that SHIB would see higher prices in an upward relief pump.

While the whole market setup remains largely bearish, she highlights conditions that could spearhead short-term recovery. The analyst sees the current market level as a buy opportunity zone for traders seeking entry positions.

According to Lingrid, Shiba Inu would target an 11.2% rally to $0.0000089, stating this is the most probable scenario as liquidity builds below the channel’s lower support trendline. The rally depends on certain criteria including sustained trend above the $0.00000741-$0.00000767 demand zone.

Bitcoin stability critical for recovery

The market commentator considers the $0.00000890 push imperative for Shiba Inu’s technical structure.

The resistance zone aligns with the descending channel’s trendline, and reclaiming it would catalyze further uptrends according to the analysis. However, failing to recapture the area would keep SHIB consolidating around lower trendline support.

This could eventually lead to a breakdown below the channel to much lower price levels if selling pressure intensifies. Whether SHIB can execute the projected 11.2% rally depends on maintaining support above $0.00000767 while Bitcoin stabilizes.

The four consecutive red weekly candles indicate sustained selling pressure that must reverse for the bullish scenario to materialize. Traders watching for confirmation of the buy opportunity will monitor whether SHIB can establish higher lows while holding above the identified support zone.