Shiba Inu price needs to form a base for SHIB to rally 25%

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.