Amid the ongoing bearish sentiment, if Shiba Inu holds the critical support level, its price could rise by 100% to $0.00003.
Yesterday, Bitcoin plunged to just over $60,000, and the Shiba Inu was hit hard by the overall market crash. Affected by the bearish market sentiment, the Shiba Inu plummeted 9.79% to a new low in August.
While this performance has disappointed investors, market observers believe that SHIB’s price could be on the verge of doubling. This observation comes as SHIB has reached a critical support area after its recent pullback.
Shiba Inu is the key support for the big rebound
In the update, analyst Kerschne highlighted that Shiba Inu was consolidating in a range around $0.000015 at the time of the update. The analyst believes that if Shiba Inu manages to hold this support level, it could pave the way for a 100% rally that could see the price double to $0.00003.
Notably, the $0.000015 price range represents the lowest level at which 100,500 addresses accumulated SHIB tokens. Data from analytics platform IntoTheBlock shows that these investors accumulated 442.81 trillion SHIB tokens between $0.000015 and $0.000019, with an average purchase price of $0.000017.
Essentially, if Shiba Inu falls below one of its strongest support levels at $0.000015, 442.81 trillion SHIB tokens would be in the red. This amount represents the largest concentration of Shiba Inu holders across the various clusters of SHIB holdings.
Shiba Inu Owner IntoTheBlock
As such, Kerschne warned enthusiasts to watch out for a break below support, which could signal further declines. The Shiba Inu broke through the $0.000015 support area earlier today, posting an intraday low of $0.00001418. However, at press time, the Shiba Inu has recovered slightly and is trading near the $0.000015 level.
In this new trading zone, 14,600 addresses hold 94.88 trillion SHIB tokens at an average price of $0.000015. As of this writing, these investors are at breakeven, awaiting Shiba Inu’s next move.
Is Shiba Inu still worth buying?
Meanwhile, other analysts say these low prices offer enthusiasts a discount opportunity, urging them to use dollar-cost averaging to buy Shiba Inus on the cheap ahead of a potentially massive rally.
They often mention the period from late February to early March, when Shiba Inu surged by almost 400% in 10 days. Analysts believe that the second phase of this big rally is coming and Shiba Inu may cancel the zero point and enter the $0.0001 range.
