Shiba Inu Price Prediction: A true bull run or the ultimate bear trap
- Shiba Inu price has breached but fails to close above the previous swing highs
- Relative Strength Index displays subtle bearish divergence.
- Invalidation of the bearish thesis is a breach above $0.00001437.
Shiba Inu price shows congestion amidst the current uptrend. A possibility for one more 20-30% decline is now on the table.
Shiba Inu price faces one more shakeout.
The current uptrend in Shiba Inu price appears to be very turbulent as the bulls are finding rejection near the $0.00001200 zone. When observing the technicals, it appears that the uptrend move is part of a corrective structure. If the technicals are correct, the SHIB price could re-route south towards the monthly swing lows at $0.00000978, and if that level cannot hold as support, a retest of June’s $0.00000800 swing low is likely.
Shiba Inu price currently trades at $0.00001211. The Relative Strength Index provides subtle cues that confounds a potential downtrend scenario. The 12-hour chart shows a bearish divergence between the June 26 high, the high on July 10, and the most recent breach of the $0.00001200 level. This may be the only clue to lean on as a probable cause for a future 20-30% sell-off.
Traders should expect more liquidity hunts disguised as an uptrend within the price action as high as $0.00001300. Invalidation of the bear trend is a breach of the May 13 swing high at $0.00001437. A breach of this barrier would spell for a genuine uptrend targeting $0.00002492, resulting in a 112% increase from the current Shiba Inu price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
