- Shiba Inu price is consolidating after a 30% run-up in three days, starting January 10.
- A retest of the demand zone, extending from $0.0000253 to $0.0000287 is likely before SHIB rallies 20%.
- A breakdown of the $0.0000253 support level will invalidate the bullish thesis.
Shiba Inu price is contemplating a direction as it hovers below a recently formed swing low. A minor retracement to a crucial support floor will likely trigger a massive uptrend for SHIB.
Shiba Inu price vies to climb higher
Shiba Inu price set up a demand zone on a daily time frame as it rallied 30%, starting on January 10. The run-up set up a swing high around $0.0000320, leading to a minor retracement.
The recovery from this tiny downswing is currently setting up another swing high, giving rise to a double top. Therefore, investors can expect SHIB to retrace toward the daily demand zone, extending from $0.0000253 to $0.0000287.
A retest of this barrier will likely trigger a massive uptrend for the meme coin, which will propel it by 20% to retest the trading range’s midpoint at $0.0000340 and collect the liquidity resting above it.
In a highly bullish case, Shiba Inu price could extend this uptrend to retest the range high at $0.0000400, representing a 40% ascent.
An uptrend for Shiba Inu price seems likely regardless of where it originates. However, if it does stem from the said demand zone, the chances of a swift move are heightened.
SHIB/USDT 4-hour chart
While things might look ambiguous for Shiba Inu price, the daily demand zone, extending from $0.0000253 to $0.0000287 is crucial in determining the fate of the meme coin.
A four-hour candlestick close below $0.0000253 will create a lower low, invalidating the bullish thesis for Shiba Inu price. In this situation, SHIB could revisit the $0.0000237 support level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.