Shiba Inu Price Forecast: SHIB has a lot to prove before bull’s ambitions can dominate

Shiba Inu price has been filled with complications, each turn higher diffused by heavy organic selling pressure or a general risk-off trend in the cryptocurrency market. The July 21 spike higher, reaching 20% at one point, did break the downtrend beginning July 6. Still, SHIB investors have not generated a follow-through, opting for a drift lower in a minor descending parallel channel. Until the digital asset can resolve the channel to the upside, market speculators should resist entering the market.

Shiba Inu price waiting for an upswing, but bids remain sporadic  

Shiba Inu price structure evolved from an inverse head-and-shoulders pattern into a descending parallel channel, with SHIB now shaping a minor descending parallel channel below the declining 50 six-hour SMA. It is another twist in the story of the meme token as speculators strive to identify the timeliest entry point for a refreshed SHIB rebound.

The 11% jump on July 21 positioned Shiba Inu price back above the May 19 low of $0.00000607. The rebound followed an oversold reading on the daily Relative Strength Index (RSI). However, SHIB has not accomplished anything since the brief burst higher, establishing a new entry price at the high of the minor descending parallel channel at $0.00000654. The measured move of the channel is approximately 11%, projecting a rally to $0.00000726, just short of the 50-day SMA at $0.00000742.

SHIB/USD 6-hour chart

To explore better outcomes, Shiba Inu price needs to regain the 50-day SMA on a daily closing basis. A close above creates the support to overcome the larger descending parallel channel at $0.00000859, which is a 38% gain from the current price.

The validity of the forecast rests on Shiba Inu price not trading below the July 20 low of $0.00000570, marking a 10% decline from the current price. Thus, investors could use any weakness down to the May 19 low to initiate a pilot position. It provides room for fluctuations but prevents getting trapped in a quick-sell off to the larger channel’s lower line, representing a 29% decline from the May low.

In a cryptocurrency complex void of FOMO and a sustainable bid, it is a challenging environment for Shiba Inu price to recover the remarkable losses recorded during the May collapse. The best approach is to let SHIB manufacture timely entry prices and participate in those breakouts with an eye on maximizing returns in a price structure marked by areas of superior resistance.

SHIB/USD daily chart

Until Shiba Inu price decisively breaks above the larger descending parallel channel’s upper line, SHIB needs to focus on small opportunities and built on that as the token proves itself.

Here, FXStreet's analysts evaluate where SHIB could be heading next as it looks stagnant.