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Shiba Inu is struggling to find stability following the recent price downturn, but analysts recommend gaining exposure at current levels.
The meme coin’s price dropped considerably last week, joining a broader market trend. The price weakness pushed Shiba Inu ($SHIB) to levels not seen in two months. Still, market watchers are making major calls on the token.
Key Points
- Analysts deem the current market level a “beautiful rate,” recommending buying some Shiba Inu here.
- The token is at its lowest level in two months, offering a good risk-to-reward ratio.
- Shiba Inu dipped to an intra-week low of $0.00000558 last week, a level last seen in early March.
- Last week’s price drop came after $SHIB revisited a key weekly EMA.
- Key levels to watch if the current corrective momentum persists are the $0.00000520 and $0.00000500 demand zones.
Analyst Drops Positive Recommendation
One analyst speaking highly of $SHIB exposure is Szymanski. In a tweet, he called the current market level a “beautiful rate,” recommending buying some Shiba Inu here.
His reasoning is that the token is at its lowest level in several months. As such, leveraging the dip offers a good risk-to-reward ratio when the market conditions turn positive again. However, the analyst emphasized this is not financial advice.
Good Time to Buy Shiba Inu?
Notably, $SHIB dropped by over 13% last week, closing at $0.00000573. Before that, it dipped to an intra-week low of $0.00000558, a level last seen in early March.
The token has seen lower prices this year, dropping to $0.00000523 on March 8 and $0.00000507 on February 6. When the market rebounded to recent highs of $0.00000670 last week, it marked an increase of 28% to 32%.
Such gains continue to support the narrative of buying low, so even small market moves benefit holders considerably. According to Szymanski, $SHIB looks attractive again as it revisits prior lows, recommending dollar cost averaging (DCAing) from here.
Shiba Inu Struggles at Key Resistance Again
Last week’s price drop came after $SHIB revisited a key weekly EMA. The upward momentum brought the token to the 21-week exponential moving average, currently at $0.0000066, but could not take it past the dynamic resistance.
Interestingly, this EMA has previously capped uptrends, making it a key level for bulls. The last attempt to break this indicator before this was in early January, when $SHIB peaked at $0.0000109. The rejection sparked a 53% drop in $SHIB’s price to February lows.
Key levels to watch if the current corrective momentum persists are the $0.00000520 and $0.00000500 demand zones. These supports cushioned earlier price weakness, and analysts are observing how it would react this time. Meanwhile, holding above them keeps hopes of a rebound alive.
The broader market conditions would also play a major part in $SHIB’s price direction in the coming days. Recent downward pressure came as Bitcoin dropped sharply to $76,000 on Sunday. How the crypto leader and other major large-cap coins perform in the coming days would impact Shiba Inu’s trajectory considerably.
Current $SHIB Market Condition
In the meantime, $SHIB trades at $0.00000567, down 3% in the past 24 hours. The sharp price downturn has wiped out $297,950 in leveraged positions over the past 24 hours, with over 95% of them longs.
Open interest has taken a deep dive, declining nearly 12% in the past day, amid increased market liquidation and caution among futures traders. Despite this, trading volume has increased 12% in the same timeframe, with flow data suggesting increased spot selling activities.
coindesk.com
coinedition.com
