Shiba Inu price eyes 20% gains but upside remains capped
- Shiba Inu price crashed 28% over four days and tagged the $0.0000224 to $0.0000233 demand zone.
- Although SHIB could rally, the upside seems to be capped at the weekly resistance barrier at $0.0000283.
- Investors can expect the meme coin to consolidate between these two barriers for the foreseeable future.
Shiba Inu price experienced a sell-off along with other altcoins in the market as Bitcoin price failed to sustain. As a result, SHIB has sliced through a crucial barrier and is currently bouncing off another one.
Shiba Inu price gets stuck
Shiba Inu price sliced through the $0.0000283 support level as it crashed 28% in roughly four days. This downswing is currently bouncing off the $0.0000233 barrier, which coincides with the $0.0000224 to $0.0000233 demand zone.
This barrier provides a strong support and investors can expect SHIB to bounce off of it and trigger a quick run-up to the recently flipped weekly resistance barrier at $0.0000283. The move would constitute a 20% ascent but an upside beyond seems unlikely.
Therefore, market participants can expect the meme coin to slip into consolidation between these two barriers for the foreseeable future.
SHIB/USDT 4-hour chart
While things are looking mildly bullish for Shiba Inu price, it is due to Bitcoin price. A sudden uptick in selling pressure could sway the odds in favor of bears. If SHIB produces a four-hour candlestick close below $0.0000224, it will create a lower low and invalidate the bullish thesis.
In this case, Shiba Inu price could crash to retest the $0.0000202 support level, where bulls can lick their wounds in preparation for the next upswing.
Author
Akash Girimath
FXStreet
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.
