Shiba Inu (SHIB) identified a vital support level following a steep 5% price decline, potentially stabilizing the market.

Support Level Established

In the midst of its current price dive, Shiba Inu (SHIB) has exposed a crucial support area.

The value of Shiba Inu tokens has been under downward pressure for six consecutive days after reaching a high of $0.0000176 on July 27. As a result of this downward trend, SHIB dropped to a trading low of $0.0000141 during today's session.

After hitting rock bottom, Shiba Inus has recovered, and this crucial level is serving as support. This level of support is backed by on-chain data.

The data from IntoTheBlock shows that 14,600 addresses purchased 94.88 trillion SHIB between $0.000014 and $0.000015, establishing this range as support.

The significant buildup of SHIB in this price range could suggest that there is a lot of purchasing going on at this level, which could help keep the price stable and even spark a rebound.

SHIB Hits Low Amid Downtrend

Like the rest of the cryptocurrency market, SHIB has fallen 1.99% in the past 24 hours to $0.0000147 as of this writing. Similarly, SHIB is down 16% week-to-date.

After Genesis finished its bankruptcy restructuring, it started distributing digital assets to creditors, and the price of cryptocurrencies dropped as investors became wary about taking risks.

U.Today elaborates that as a result of recent price changes, the $0.000014-$0.000015 range may be an important place to monitor in the near future. It may be crucial to its short-term trajectory whether SHIB can maintain its recovery from these levels.

Possible Bullish Rebound

A possible bottoming out and subsequent rebound could be signaled if SHIB can maintain its position above this level. If SHIB manages to break out of its current trading range and sustain a price above its 50-day moving average of $0.0000172 and 200-day moving average of $0.0000203, respectively, that might signal the beginning of a bullish bounce.

However, according to on-chain statistics, the next significant support area for SHIB, should falls persist, is $0.000008 to $0.000014.