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  • Shiba Inu price rallied 55% during the final trading week of October.
  • Recently established shorts may face a challenge in the coming days.
  • Invalidation of the bullish outlook is a breach below $0.000001040.

Shiba Inu showed significant bullish strength during the last days of October. Following last week's successful bullish trade idea, the SHIB price shows a few continuation-of-trend signals. Key levels have been defined to gauge the next move.

Shiba Inu price might still need to be done

Shiba Inu price stunned the crypto market as the notorious meme coin rallied 55% during the final week of October. It was mentioned in last week's bullish thesis when SHIB traded at $0.00001090 that a 20% rally was likely to challenge bearish liquidity levels near $0.00001350. The bulls validated the bullish trade idea and then some, printing a last-minute monthly high at $0.00001509. 

Shiiba Inu price currently auctions at $0.00001189 as bears were reluctant to short the SHIB price after over-exceeding day traders' expectations. SHIB is down 21% at the time of writing since the newfound October high was established. The upswing saw an influx of volume and breached oversold territory on the Relatives Strength Index (RSI).  

tm/shib/11/3/22

SHIBUSDT 4-Hour Chart

The SHIB price now auctions just above the 8-day exponential moving average. This is the first reacquaintance with the moving average after the bullish cross occurred on October 27, which catalyzed the additional 30% rally. The RSI also remains in bullish territory, suggesting the uptrend can continue.

Considering these factors, the SHIB price has the potential to challenge newly established shorts near the monthly high at $0.00001509. A rally from today's price would result in a 30% increase in market value.

Invalidation of the bullish thesis could occur if the bears breach the $0.00001040 liquidity zone, which resides under the 21-day simple moving average. A sweep of the low could trigger an additional decline toward $0.00000970. The price of Shiba Inu would decline by 17% if the invalidation scenario occurred. 

In the following video, our analysts deep dive into the price action of Shiba Inu, analyzing key levels of interest in the market. -FXStreet Team


 


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