Shiba Inu price eyes a quick 16% run-up as SHIB bears take a breather
- Shiba Inu price is currently trading around a confluence of support, hinting at a 16% bounce.
- The confluence of the 50-day and 200-day SMAs with the $0.0000270 to $0.0000288 demand zone make this uptrend compelling.
- A breakdown of $0.0000270 will invalidate the bullish thesis.
Shiba Inu price retests a massive support area confluence consisting of three significant elements. Therefore, investors can expect a reaction off this zone to result in a bullish move for SHIB.
Shiba Inu price eyes a higher high
Shiba Inu price retraced 18% after it exploded by 75% between February 4 and 7. The initial run-up set up a demand zone, extending from $0.0000270 to $0.0000288 before reaching its local top at $0.0000352.
As investors continue to book profits, Shiba Inu price retests this demand zone. Interestingly, the demand zone harbors the 50-day Simple Moving Average (SMA) and the 200-day SMA, coinciding at roughly $0.0000270.
Additionally, the demand zone also contains a weekly foothold at $0.0000283, making this convergence of multiple support levels around roughly $0.0000270 a formidable barrier to breach. Therefore, a bounce off this area will see Shiba Inu price rally at least 16% to retest 100-day SMA at $0.0000333.
SHIB/USDT 4-hour chart
While things are looking pretty solid for Shiba Inu price, a potential spike in selling pressure that pushes SHIB to produce a four-hour candlestick close below $0.0000270 will create a lower low and invalidate the bullish theiss.
This move will open the path for SHIB bears to knock the altcoin down to $0.0000233, filling up the fair value gap, extending from $0.0000270 to $0.0000233. If buyers band together around this level, a comeback seems likely for Shiba Inu price.
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.
