Major Shiba Inu Recommendation as Price Drops to Multi-Month Lows

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.

Shiba Inu and the 21W EMA

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.

Shiba Inu Liquidation Data/Coinglass

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.