• Shiba Inu price reversing earlier gains of nearly 20% as retail investors use strength to trim positions.
  • SHIB strikes support at the instructive May 19 low of $0.00000607.
  • Daily Relative Strength Index (RSI) nearly triggered an extreme oversold condition.

Shiba Inu price has granted an interesting experience for investors, plotting different patterns with accurate entry prices only to reverse and pursue new correction lows. Today’s advance may be the beginning of a sustainable opportunity. Still, it is imperative to resist the chase based on historical precedent and the rapidly deteriorating intra-day price action, as SHIB has not accomplished anything yet. Better to opt for a gradual accumulation of the meme token as it proves itself.

Shiba Inu price rebound still encounters a challenging environment 

Shiba Inu price structure has morphed from an inverse head-and-shoulders pattern into a descending parallel channel with the upper trend line at $0.00000883 and the lower trend line at $0.00000447, representing a range of over 90% from bottom to top. 

The 50-day simple moving average (SMA) at $0.00000763 is a key Shiba Inu price level that may restrict a meaningful rally from current prices, as the indicator has been a weight on SHIB since its appearance on June 28. Currently, SHIB is trading about 20% below the moving average.

To explore better outcomes, Shiba Inu price needs to fortify the support designated by the May 19 low of $0.00000607, potentially leading to a significant rally like in mid-June and late-June, each measuring over 50%. Not a guaranteed outcome with the lower trend line of the descending parallel channel at $0.00000447 generating a magnet effect for price.

Supportive of a continuation of today’s rebound is the near oversold reading yesterday, suggesting that selling pressure in SHIB may have been exhausted, at least in the short term.

Overall, if Shiba Inu price remains firm at the May 19 low, SHIB investors can initiate a pilot position with yesterday’s low of $0.00000570, serving as the stop/loss. It provides room for daily fluctuations but prevents getting caught in a quick sell-off to the lower trend line, which would be a 24% loss from yesterday’s low.

A follow-through on today’s gains will encounter strict resistance at the 50-day SMA at $0.00000763 before a test of the upper trend line of the descending parallel channel at $0.00000883, yielding a return of almost 40% from the current Shiba Inu price.

SHIB/USD daily chart

SHIB/USD daily chart

Shiba Inu price risk should be limited to around $0.00000447. Due to the short SHIB price history, it is difficult to form conclusive support levels if selling pressure continues. The key is to respect yesterday’s low as a stop/loss, thereby avoiding being caught in an uncertain situation.

Today’s Shiba Inu price gain will make the news roll, but it does not alter the challenging environment for the digital asset or the cryptocurrency market. Instead, use the opportunity for a pilot buy and then seek follow-through and conviction in SHIB before chasing prices further.

Here, FXStreet's analysts evaluate where SHIB could be heading next as it seems bound for higher highs.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Crypto bulls unfazed by flash crash

Bitcoin price action initially shakes off strong selling pressure, finds buyers at support, then resumes some selling pressure. Ethereum price action mixed post-all-time high rejection. XRP price awaits its own bullish breakout and an opportunity to outperform its peers.

More Cryptocurrencies News

MATIC price ready for new all-time highs as $188 million flow into Polygon

The total number of transactions on Polygon network dropped nearly 15% due to a rise in transaction fees over the past week. This hasn’t negatively impacted the network as the number of unique daily active users remained stable. 

More MATIC News

AVAX price offers a bullish opportunity before Avalanche hits new all-time highs

Avalanche (AVAX) price has seen a bullish outbreak on Thursday after it broke out above – and then retested – the red descending trend line at $61.62. With even more buyers and bulls coming in, expect a run towards new all-time highs at $81.

More AVAX News

XLM price building base for bullish breakout

Stellar bulls are in the last phase of completing a bullish triangle. As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%. After taking a breather, expect another 10% of profits to follow. 

More Stellar News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP