Shiba Inu price prepares for 125% breakout to $0.000089

Shiba Inu (SHIB) has been downtrending within a pattern for almost the whole of November. After hitting the low of the month on Friday, with global markets in panic mode, investors could spot buy opportunities as concerns about the new Covid variant started to ease. Expect the pick-up on the buy-side to continue further and signal the start of a new longer-term uptrend towards $0.00008870.

Shiba Inu price to start new long term uptrend cycle

Shiba Inu price came under fire last Friday with massive headwinds from global markets turmoil, which caused SHIB to print a new low for November. During the weekend, sentiment started to fade, as investors weighed in on a return to risk after the first sign the new Covid variant was less harmful than initially thought. A pick-up in buy-volume is seen in the price action from this weekend, with SHIB price fading away from its $0.00003500 low.

SHIB price faces its first real test at around $0.00004465 where the 61.8% Fibonacci level and the 55-day Simple Moving Average (SMA) are situated. Shiba Inu price bulls will be forced to show their hand and prove strength at that level or there is a risk of a  bull trap forming, in which SHIB price spiked up temporarily, drawing in more buyers, only to quickly retreat back down and begin selling off. As global markets are easing and switching back to risk-on, expect these tailwinds to help lift SHIB sentiment and see more and more buyers pick up Shiba Inu coins to add to their portfolio.

SHIB/USD daily chart

Monthly recalibrations in December aside – to pivots, supports and resistances – –  expect bulls to break above the aforementioned 61.8% Fibonacci level and 55-day SMA quite easily, and then to follow up  with a quick return towards the 50% Fibonacci at $0.00005690. As long as current tailwinds are present and even pick up steam, expect this bull run to be there for most of December into the year-end. 

If more negative news emerges concerning the current Covid variant, expect a quick reshuffle by investors, with riskier assets on the chopping block. This would see the SHIB price quickly dip lower towards $0.00003500 and possibly make a new low for November and December. The 78.6% Fibonacci level at $0.00002782 has yet to prove a retest of the bounce on October 23, and could also give some medium-term support for Shiba Inu price.