Shiba Inu price needs to form a base for SHIB to rally 25%
- Shiba Inu price is on a non-stop downtrend with no near-term bottom in sight.
- SHIB has a chance to surge 25% to $0.0000380 if a bottom forms around $0.0000295 or $0.0000270.
- A swing low below $0.0000270 will invalidate the bullish thesis.
Shiba Inu price has been on a steady downtrend for roughly two months and shows no signs of slowing down. However, investors can expect SHIB to form a base that will result in a reversal of the nosedive.
Shiba Inu price looks for a base
Shiba Inu price has produced roughly four lower lows since the December 4 crash. Due to its downtrend, SHIB is very close to retesting the December 4 swing low at $0.0000295. Investors can expect the meme coin to see some sort of bullish activity around this level, leading to the formation of a base.
Assuming this occurs, Shiba Inu price could set up a triple bottom around $0.0000295 or, in a worst-case scenario, $0.0000270, which will result in a reversal of the downtrend. In such a case, SHIB will likely retest the $0.0000380 resistance barrier and collect the liquidity resting above it.
This run-up will represent a roughly 30% gain from $0.0000295 and a 40% advance from $0.0000270. If the bullish momentum persists, Shiba Inu price could extend to $0.0000411 and $0.0000442.
SHIB/USDT 4-hour chart
On the other hand, if Shiba Inu price fails to form a base around $0.0000295, it will have a chance to do the same at $0.0000270. A decisive close below this level, however, will invalidate the bullish thesis and indicate that a further loss is likely.
In some cases, if the selling pressure continues to pour in, it could trigger a 14% crash to $0.0000232.
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.
