Shiba Inu price prepares for a 20% rally as SHIB bulls look for a launchpad
- 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.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
