Shiba Inu at a Crossroads: Analyst Warns of Critical Support Test

Cryptocurrency markets are watching Shiba Inu (SHIB) closely as the popular meme coin retests a vital technical support level. According to prominent analyst Ali Martinez, the outcome of this re-evaluation could set a definitive course for SHIB's price in the coming days.

The Parallel Channel and Key Support

Technical analyst Ali Martinez has identified a significant "Parallel Channel" pattern on SHIB's weekly price chart. This pattern, characterized by sideways price action contained between two parallel trendlines, sees its lower boundary serving as a critical support zone. Currently, SHIB's price has dipped to this essential support level, situated at $0.0000066721. This exact level proved resilient in 2023, successfully halting previous declines and triggering a notable reversal for the cryptocurrency.

Bearish Pressure and Downside Risks

Despite its historical significance, SHIB's recent performance has been concerning, with the meme coin recording a 9.5% weekly drop, indicating persistent bearish momentum. Martinez cautions that a failure to hold the $0.0000066721 mark could lead to a significant downward correction, with potential targets at $0.0000029954 and, in a more severe scenario, $0.0000013522. Investors and enthusiasts alike are keenly awaiting whether this pivotal support will hold or give way to further declines, impacting SHIB's trajectory moving forward.