Aaryamann Shrivastava
FXStreet
- Shiba Inu price has recovered from recent lows, reaching levels above $0.00001100.
- SHIB could witness a 27% rise if the critical resistance at $0.00001189 is flipped into support.
- If the macroeconomic conditions worsen, a decline below $0.00000966 would invalidate the bullish thesis.
Shiba Inu price, like other cryptocurrencies, has been following the broader market cues for the last couple of days. The strong bearish trend kept the altcoin from recovering the losses it witnessed over the last month, but the changing winds might enable SHIB to achieve that going forward.
Shiba Inu price aims higher
Shiba Inu price noted a 3.61% increase in value from weekly lows, trading at $0.00001090, to counter the decline noted 48 hours ago. Traders that have been patiently waiting for an opportunity to long the altcoin might be in luck if SHIB manages to climb above the critical resistance at $0.00001189.
The Parabolic Stop and Reverse (SAR) has been highlighting an active downtrend for the last month. The presence of the blue dots of the indicator above the candlestick has been evidence of the same. However, going forward, this downtrend might be coming to an end, and the indicator might shift its position to indicate an active uptrend.
This is because the bearish cues have been weakening, which is visible on the Average Directional Index (ADX). The slip of the indicator below the threshold at 25.0 shows that the active trend is losing strength. Thus, if SHIB is in an uptrend the next time the indicator crosses above the threshold again, a price rise might be on the cards.
SHIB/USD 1-day chart
Although in order to establish a sustainable rise, Shiba Inu price would have to flip the critical resistance at $0.00001189 into a support floor. This would allow SHIB to climb back to $0.00001395 and mark a 27% rally. Breaching this level would also open the opportunity for the meme coin to establish new year-to-date highs around $0.00001477.
However, at the moment, Shiba Inu price is not too far away from critical support either. If the altcoin slips below this level at $0.00000966, it would invalidate the bullish thesis. Furthermore, the meme coin would become vulnerable to a fall to December 2022 lows around $0.00000769.
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