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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. 

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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.

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