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Shiba Inu price is on the cusp of a 65% bull run

  • Shiba Inu price broke through the 78.6% Fibonacci level but failed to close above.
  • SHIB price breaks back above the monthly pivot in early trading.
  • Expect to see an attempt for $0.00003000 near-term, with a longer-term target set at $0.00004490.

Shiba Inu (SHIB) price saw bulls taking the lead on Monday by using the 55-day Simple Moving Average (SMA) handle as an entry point that resulted in the price shooting up to the 200-day SMA of $0.00003000, but bulls were unable to perform a daily close above this level. In the ASIA PAC session this morning, SHIB price is knocking at the door of the 78.6% Fibonacci level at $0.00002782, which opens the path towards 61.8% Fibonacci level at $0.00004490, meaning a whopping 65% gain is within reach. In order to achieve that target, a daily close above the 78.6% Fibonacci should be enough to rally at a tiered pace.

Also read: AMC stock finally begins stalling, so it may be time to book profits

Shiba Inu price set for a phased rally

Shiba Inu price will swing back to $0.00003000, which coincides with the 200-day SMA. Technically, this is the most significant technical hurdle to overcome if investors want to book 65% of gains in this spring rally. In case a daily close above here is reached, a significant bullish signal will be delivered to the markets, which will trigger more investors and day traders to the price action to ramp it further up, resulting in crossing some grounds quite quickly to $0.00003400, which falls in line with the monthly R1.

SHIB price then has only one element that could keep it from popping further upwards to $0.00004465, and that is the $0.00003989 level which coincides with the high of December 24. Not only would that mean that SHIB price is printing new highs for the year, but in the meantime will have wholly reversed the winter downtrend that slammed price action with the Ukraine war. Only a 10% jump remains to hit the 61.8% Fibonacci level and will see a broad and significant fade to the downside as investors will want to book gains and cash in there.

SHIB/USD daily chart

SHIB/USD daily chart

Risk to the downside comes on Tuesday with talks in Turkey between Russia and Ukraine that could provide a setback. Both parties are still talking, but should one party walk away from negotiations, that would mean a big step back for markets as investors have been front-running a positive outcome since last week, with the expectations bar set high. A collapse of SHIB price could result with Shiba Inu price dropping back to $0.00002200, losing support of that 55-day SMA and rebalancing around that green ascending trendline marked up since January 25

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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