Shiba Inu (SHIB), the self-proclaimed “Dogecoin killer,” is back in the headlines. After a steep decline, analysts say SHIB has entered a buy zone, potentially signaling a buying opportunity for investors.

SHIB Dips Create Opportunity

A recent tweet from crypto analyst SHIB Knight highlights a chart outlining key price levels for Shiba Inu. The analysis suggests SHIB has entered a new buy zone, making it attractive for investors seeking entry at a low point. Specifically, analysts pinpoint $0.00002392, $0.00002105, and $0.00001837 as key levels, with emphasis on prices below $0.000018 offering significant buying opportunities.

Read Also: Can Shiba Inu (SHIB) Rebound in July? Here’s What History Says

Support Levels Crucial for Bullish Momentum

SHIB Knight’s analysis leans on weekly chart technical analysis. In the crypto world, bulls (investors expecting price increases) often fiercely defend specific price points to trigger upward momentum. For Shiba Inu, critical support levels sit around $0.00001760 and $0.00001766. Monitoring these levels is crucial to gauge potential bullish trends.

Can SHIB Reach for the Stars? Analyst Makes Bold Prediction

The launch of Shiba Inu in August 2020 was marked by a significant allocation of tokens to Ethereum co-founder Vitalik Buterin. In a move that sent shockwaves through the crypto community, Buterin burned a whopping 90% of his SHIB holdings, donating the rest to charity. This burn significantly reduced the circulating supply and caused a surge in SHIB’s price.Could history repeat itself? Analysts believe so.

Currently, there are approximately 589 trillion SHIB tokens in circulation. If another 400 trillion were burned, the circulating supply would plummet to around 189 trillion. With SHIB’s current market cap of $10 billion, this scenario could theoretically propel the price to a staggering $0.00005291. However, analysts caution that such a large-scale burn would require significant participation from SHIB holders worldwide.

Early Signs Point to Positive Momentum

Despite the uncertainty surrounding a large-scale burn, there are early signs of positive momentum for Shiba Inu. The price has shown a slight recovery, inching up 2.04% to trade at $0.00001742. Additionally, a 15% increase in trading volume to $223.22 million indicates strong investor interest. Moreover, the token’s open interest has climbed nearly 4% to $33.73 million, reflecting strong market sentiment and engagement.

Shiba Inu: A High-Risk, High-Reward Play?

While the future of Shiba Inu remains uncertain, the recent analysis suggests a potential buying opportunity. However, investors should remember that the cryptocurrency market is inherently volatile. This analysis should be considered alongside other factors before making any investment decisions.