Shiba Inu Price Forecast: Looking at June high as Trump lead in US election propels crypto

Shiba Inu (SHIB) soars more than 7% on Wednesday, following the surge in the main cryptocurrencies, as former President Donald Trump takes a clear lead in the US presidential election. The technical outlook suggests a rally if the meme coin price breaks and closes above a descending trendline, bolstered by a rising long-to-short ratio that reached its highest level since October.

SHIB is poised for a rally if it closes above the key resistance level 

Shiba Inu’s price surges more than 7% on Wednesday and is nearing a descending trendline (drawn by joining multiple highs since the end of March). 

If SHIB breaks above the descending trendline and closes above the daily resistance level at $0.000020, it would rally 30% to retest its June 5 high of $0.000026.

The Moving Average Convergence Divergence (MACD) indicator on the daily chart is about to flip a bullish crossover on Wednesday, giving a buy signal and indicating upward momentum. Additionally, the Relative Strength Index (RSI) reads at 58, above its neutral level of 50, suggesting that bullish momentum is gaining traction.

SHIB/USDT daily chart

The Shiba Inu team proposed plans to reshape the US crypto landscape on Tuesday, igniting investor enthusiasm. Shytoshi Kusama’s blog post highlights a proposal to establish a Strategic Hub for Innovation and Blockchain (SHIB) in a US city, “Silicon Valley of Crypto,” to be presented to the future US president and the global crypto community.

“This SHIB initiative aims to stimulate economic growth, create high-quality jobs, enhance national security, and reinforce the United States’ leadership in emerging technologies. The hub will integrate sustainable practices, aligning with national goals for environmental stewardship and sustainable economic development.”, says the blog post.

Coinglass’s data further support Shiba Inu’s bullish outlook. SHIB’s long-to-short ratio is 1.03, the highest level in one month. This ratio reflects bullish sentiment in the market, as the figure above one suggests that more traders anticipate the price of SHIB to rise.

SHIB long-to-short ratio chart. Source: Coinglass 

However, the bullish thesis would be invalidated if SHIB fails to break above the descending trend line and closes below the September 30 low of $0.000015. This scenario would lead to a further 14% decline in the Shiba Inu price to retest its September 18 low of $0.0000129.