Amid ongoing bearish sentiment, Shiba Inu could be setting out for a 100% price surge to $0.00003 if it maintains a crucial support level.

Shiba Inu took a major hit from yesterday’s market-wide dump when Bitcoin tanked to just above $60K. Following the market’s bearish sentiment, Shiba plummeted by 9.79%, setting a new bottom for August.

While this performance underwhelms investors, market observers believe SHIB could just be about to double in price. This observation emerges as SHIB has reached a crucial support zone following this latest retracement.

Shiba Inu Crucial Support for Major Rebound

In an update, analyst Kerschne highlighted that Shiba Inu was consolidating within a range of around $0.000015 at the time of the update. The analyst argued that if Shiba Inu successfully defends this support level, it could pave the way for a 100% rally, potentially doubling its price to reach $0.00003.

Notably, the $0.000015 price range represents the lowest level at which 100,500 addresses had accumulated SHIB tokens. Data from analytics platform IntoTheBlock indicates that these investors amassed 442.81 trillion SHIB tokens between $0.000015 and $0.000019, with an average purchase price of $0.000017.

Essentially, if Shiba Inu drops below $0.000015, one of its strongest support levels, it would put 442.81 trillion SHIB tokens at a loss. This amount represents the largest concentration of Shiba Inu holdings among the various clusters of SHIB accumulation by holders.

Shiba Inu Holders IntoTheBlock

As a result, Kerschne warned enthusiasts to watch for a break below the support level, which could signal further declines. Shiba Inu breached the $0.000015 support zone early today by establishing an intraday low at $0.00001418. However, at press time, Shiba Inu has slightly recovered, nearing the $0.000015 level.

In this new trading zone, 14,600 addresses hold 94.88 trillion SHIB tokens purchased at an average price of $0.000015. At the time of reporting, these investors are at a break-even point, awaiting Shiba Inu’s next move.

Is Shiba Inu Still A Good Buy?

Meanwhile, other analysts have expressed that these low prices offer enthusiasts a discount opportunity, urging them to employ dollar-cost averaging to amass Shiba Inu cheaply before a potential mega rally.

They often reference the period between late February and early March when Shiba Inu soared nearly 400% in 10 days. Analysts believe a second phase of this mega rally is in the offing, with Shiba Inu potentially canceling a zero to enter the $0.0001 range.