Shiba Inu price at a critical juncture, failure to overcome could result in 20% sell off

Shiba Inu price is attempting to move higher but is currently plagued with a significant resistance level. Although the Bitcoin price rally on September 4 provided altcoins with a brief moment of bullish outlook, things are changing rapidly and could result in a trend reversal.

Shiba Inu price gives its all

Shiba Inu price has used the $0.0000118 barrier as support between July 31 and September 15, which resulted in a 50% ascent. However, the sell-off after September 15 resulted in a breakdown of this support level and flipped into a resistance barrier.

As a result, Shiba Inu price dropped 16% and is currently undergoing a trend reversal. This surge in bullish momentum has pushed SHIB close to retesting the $0.0000118 hurdle. A failure from buyers to overcome this blockade would result in a rejection that could trigger a sell-off.

With Bitcoin price cooling off after its recent rally, the next move could favor the bears depending on how Shiba Inu price reacts to the aforementioned level. A confirmation of the downtrend will arrive if the meme coin produces a lower low below the October 2 swing low at $0.0000107. 

After this, investors can expect Shiba Inu price to slide lower and retest the $0.0000092 support level. This move would constitute a 20% loss and is likely where the downside is capped for the dog-themed crypto.

SHIB/USDT 1-day chart

On the other hand, if Shiba Inu price flips the $0.0000118 hurdle into a support level, it would indicate that the buyers are back. Such a development would invalidate the bearish thesis and trigger a potential rally to $0.0000140.