Shiba Inu Tests Rare Price Levels Seen Only Twice in Three Years

Shiba Inu dropped to price lows that have historically served as bottoms, bringing its potential uptrend back into focus.

The retest came amid selling pressure and macro uncertainties, weighing heavily on sentiment and prices. Following the broader altcoin market’s direction, Shiba Inu (SHIB) corrected to notable price lows on Tuesday, with market participants pondering what’s next.

Key Points

• Shiba Inu dropped to price lows that have historically served as bottoms, bringing its possible subsequent trend back into focus.
• The meme coin reached an intraday low of $0.00000526 on March 3, marking its closest attempt to retest its yearly low of $0.00000507 reached on February 6.
• This yearly low aligned with multi-year price levels that Shiba Inu has only reached twice in three years.
• Shiba Inu responds to macro trends, positive community sentiment, bullish ecosystem developments, and broader market momentum and liquidity expansion. 
• A combination of these factors would shape its subsequent price direction.

Shiba Inu Drops but Shows Strength

TradingView data shows that SHIB recorded its sixth consecutive red daily candle on Binance yesterday after a mild, less than 1% correction. But what catches the eye is the token’s intraday low.

For context, the meme coin reached a low of $0.00000526 on March 3, then recovered with the rest of the market and closed at $0.00000548. The low marked its closest attempt to retest its yearly floor of $0.00000507 reached on February 6.

Meanwhile, this yearly low aligned with multi-year price levels that Shiba Inu has only reached twice in three years. Aside from the early February retest, it last dropped to $0.0000050 in June 2023. What followed was a strong recovery, which turned into sustained bullish price action.

As such, market data suggests this $0.0000050 support is a historic price bottom. With Shiba Inu closing near this area, the conversation of a rebound, as seen in the previous two visits, has begun making the rounds.

Moreover, Shiba Inu is already showing strength around the low. From the Tuesday lows, the token bounced 4% to its closing price, indicating the heavy buying pressure in and around the yearly lows.

What Needs to Happen Next?

Notably, an asset like Shiba Inu responds to macro trends, positive community sentiment, bullish ecosystem developments, and broader market momentum and liquidity expansion. As a result, a combination of some of these factors would shape its subsequent price direction.

Bitcoin (BTC) has shown admirable resilience in the face of sentiment-dampening factors like the ongoing war between Israel and Iran. Notably, Iraq’s Rumaila, the world’s second-largest oil field, saw a drop in production as a result of the conflict, further pressuring the global economy with prospects of oil scarcity.

Under these circumstances, Bitcoin has not made new lows; rather, it has bounced to reclaim $68,000. If this momentum persists, altcoins like SHIB would benefit. 

Buying activity also needs to return if the meme coin is to recover. Data shows spot inflows to exchanges outpaced outflows in the last 24 hours, indicating holders are relocating their stash to platforms where it is easily sold. A shift in disposition from distribution to accumulation would aid SHIB’s rebound.

Technically, the meme coin would have to hold the multi-year bottom at $0.0000050. Whales would need to sustain the buying pressure around this area for a recovery. Falling below would create more panic and see SHIB dump to much lower prices.