An analysis says Shiba Inu has re-entered a key support zone where a major rally began in the past.

On April 20 local time, blockchain outlet The Crypto Basic reported that analyst Crypto Patel said Shiba Inu is trading in a price band he classifies as a support zone, or accumulation zone 1. He said the zone was the starting point of strong rebounds in 2021 and 2024.

Patel cited a key price range of $0.000004 to $0.000005. He presented it as a major accumulation area and said buying previously flowed strongly into the range. His chart showed Shiba Inu rising 1,660 percent in late 2021 and 746 percent in 2024 after rebounding under similar conditions.

He judged the current structure to be similar to those periods. Shiba Inu has been moving sideways near support, and Patel suggested this may indicate accumulation is under way. He also said a downward resistance trendline that has capped prices is gradually compressing volatility, and that a breakout could become more likely if buying pressure strengthens near support.

Patel also laid out a bullish scenario. If Shiba Inu rebounds from $0.000004 support and enters a parabolic uptrend, it could rise to about $0.00008789, he said. Based on a current price of about $0.000006, that implies a gain of up to 2,200 percent and an additional upside potential of 1,364 percent. He added, however, that he questioned whether a full 20-fold rise would be realistic even if a strong altcoin market emerges.

The cautious view also aligns with past price moves. Shiba Inu hit an all-time high of $0.00008845 in 2021 but has not regained that level. In a rebound phase in March 2024, the price rose to around $0.000045 before being pushed back. As a result, the current accumulation zone could become a foothold for further gains, but the size of any rise could vary with market conditions.

Market conditions also remain a variable. Patel said the strength of any rebound could depend on macroeconomic trends and retail investor interest in memecoins. If those conditions do not align, Shiba Inu could rebound without matching its previous momentum.

Supply-and-demand indicators are signaling easing selling pressure in the short term. Net exchange inflows have recently turned negative, meaning investors moved more tokens out than they deposited into exchanges over a day. CryptoQuant data put net outflows at 41.67 billion SHIB. Lower exchange balances can reduce tokens available for near-term selling and may help stabilize prices.

Still, the amount remaining on exchanges is not small. Shiba Inu held across trading platforms stands at about 81.62 trillion tokens. As a result, entry into the key support zone and the shift to net outflows are lifting expectations of a rebound, but whether a trend turns will depend on whether support holds and buying continues.

The main point of the analysis is that it presented both a repeatedly responsive support zone and actual exchange outflow data, rather than focusing on a price target itself. The approach of looking at chart structure and flow trends together was presented as a yardstick for gauging Shiba Inu's chances of a short-term rebound.

$SHIB Is Back At The Exact Zone That Pumped It 1660% & 746% Before... Will #SHIBAINU 20x This Alt Season? pic.twitter.com/7V7RMXWH9J