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Shiba Inu price could trigger 40% gains if SHIB can cross this level

  • Shiba Inu price continues to consolidate between the $0.0000328 to $0.0000387 barriers.
  • A breakout from the upper limit could catalyze a 40% ascent to $0.0000543.
  • However, if SHIB produces a lower low below $0.0000328, it will invalidate the bullish thesis.

Shiba Inu price has been moving sideways for more than a week, indicating that the buying and selling pressure are equally matched. Although SHIB saw a sudden uptick in buying pressure, it was short-lived and within the consolidative range. However, investors need to see a breakout from this range to trigger a massive move higher.

Shiba Inu price eyes higher high

Shiba Inu price set up a swing high at $0.0000395 after the December 4 flash crash. Shortly thereafter, the meme coin set up a swing low at $0.0000328. This development was followed by a series of roughly equal highs and lows that formed in this trading range.

SHIB failed to bounce off the 79% retracement level at $0.0000340 and corrected very near  to the range low. However, the buyers stepped in on December 12, triggering a minor 12% upswing that fell short of retesting the range high at $0.0000387.

As Shiba Inu price pulls back to the 79% retracement at $0.0000340 again, investors can expect SHIB to see another rally. If this run-up produces a 4-hour candlestick close above $0.0000387, it will signal a bullish outlook. 

In this case, Shiba Inu price will first attempt to flip the $0.0000411 and $0.0000442 resistance levels. In a highly bullish case, the Shiba Inu price will make a run for the November 30 swing high at $0.0000543, constituting a 40% gain from the range high at $0.0000387.

SHIB/USDT 4-hour chart

SHIB/USDT 4-hour chart

On the other hand, if Shiba Inu price fails to muster up the bullish momentum at $0.0000340, it will indicate that the buyers are taking their sweet time. However, if SHIB produces a lower low at $0.0000328, it will invalidate the bullish thesis. In such a scenario, Shiba Inu price could venture lower to retest the December 4 swing low at $0.0000295.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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