- Shiba Inu prices were down 4% on the day but remained 84% above the yearly opening price.
- SHIB could be setting up for a 9% rally targeting the monthly open.
- Invalidation of the bearish thesis would arise from a tag above $0.0001399.
Shiba Inu price shows reasons to practice caution as sudden changes in market behavior suggest a decline is on the way. This thesis utilizes technical analysis and indicators to forecast the next potential move for SHIB.
Shiba Inu price shows room for a pullback
Shiba Inu price is down 4% on the day as the bears have taken hold of a current trading range that has been developing throughout the last two weeks. Since January 1, the digital meme coin has rallied by 84%. While a 4% downswing seems like no big deal, evidence based on technical indicators suggests a larger pullback for the rally could occur.
Shiba Inu price currently auctions at $0.0001306. The decline occurred on a key resistance level on a Relative Strength Index and breached the 8-day exponential and 21-day simple moving average to the downside.
Considering these factors, an entire downswing is too far-fetched to call, but a 10% decline targeting the monthly open stands a fair chance of occurring.
SHIB/USDT 1-Day Chart
Based on the resistance formed near the mid $0.0001300 zone throughout the last two weeks, traders can use the swing high within the region at $0.0001399 to qualify the bearish potential. A breach above the barrier could induce a buying frenzy to challenge the monthly high at $0.0001575. The bullish scenario would pave the way for a 20% increase from SHIB's current price.
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