|

Shiba Inu price could rise 20% as bulls flip resistance into support

  • Shiba Inu price has broken past the 50-day moving average

  • SHIB has the potential for a 20% rally

  • A touch below $0.00002120 will invalidate this bullish idea

Shiba Inu price has broken past last week's resistance barrier on the 8-hour chart. The potential for SHIB looks fruitful as the bulls are testing the broken barrier as new support.

Shiba Inu price has been conquered by the bulls

Shiba Inu price has been a more suppressed digital asset as bears have been relentless in price action. However, it was mentioned in last week's article that there was a potential for a 30% swing in the days to come for the popular meme coin. Now, SHIB has shown that the trend's new direction favors the bulls. 

This weekend, the meme coin broke out past the previous resistance zone with a very strong bullish engulfing candle on the 8-hour chart. The resistance barrier lines up with the 50-day moving average and is currently trading above the moving average at $0.00002315. If Shiba Inu price can maintain support, further upside into the monthly high would be likely. Subsequently, the monthly high also aligns with the 200-day moving average, a common target zone amongst day traders.

SHIB/USDT 8-Hr Chart

Shiba Inu price can still disappoint fans as nothing is ever what it seems in the crypto market. An invalidation level is necessary for traders looking to join the future trend. SHIB should not fall more than 8%. The swing lows must remain intact to support this bullish idea. 

If $0.00002120 were to get touched, there would be no way to consider a bullish scenario. The bears would likely have complete control and send Shiba Inu price an additional 30% lower into the $0.00003100 level. 

Author

FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

More from FXStreet Team
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP trade under sustained selling pressure despite mild ETF inflows

Cryptocurrency prices remain under pressure as a risk-off mood persists on Friday, with Bitcoin consolidating its losses above $62,000. Altcoins, including Ethereum and Ripple, are extending their weakness, trading near lower support levels around $1,600 and $1.12, respectively.

Bitcoin Weekly Forecast: After the bloodbath, everyone looks at $60,000

Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit. A reactionary spike in on-chain activity and social chatter, reflecting a strength of community, but fails to absorb the price decline.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes dumped his entire Zcash holdings on Friday, a day after selling his HYPE and NEAR holdings. Zcash is down 13% so far on Friday, extending the 26% drop from the previous day.

Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.