Shiba Inu Price Prediction: A pullback is not too far-fetched
- 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.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
