Shiba Inu price primed for 20% rally as SHIB seizes opportunity after Dogecoin’s failure
- Shiba Inu price has grabbed sell stops below $0.0000101, signaling a potential reversal.
- Investors can expect SHIB to trigger a 22% ascent if this outlook plays out.
- A decisive flip of the $0.0000101 level will invalidate the bullish thesis for the meme coin.
Shiba Inu price has been tightly wound between two levels since March 14. Carefully observing the movement reveals a trend to it, which suggests that SHIB is primed for a quick upswing.
As the April 20 date approached, the demand for meme coins increased, which led people to think about the original meme coin - Dogecoin. However, due to Elon Musk's lack of involvement and Dogecoin price's failure to rally, investors were disappointed. To make matters worse, Bitcoin price saw a sudden spike in selling pressure that pushed it down by 5%, which extended to 10% as the week elapsed. Regardless of the recent occurrence, Shiba Inu price looks ready for a quick uptick and could take the opportunity that Dogecoin failed.
Shiba Inu price ready to shoot higher
Shiba Inu price set up a local top at $0.0000157 on February 4 and shed roughly 38% in the next four weeks. This downtrend formed a bottom at $0.00000964 on March 10, and since then, SHIB has been tightly wound in a consolidation. This newly formed range extends from $0.0000101 to $0.0000117.
Careful observation reveals that liquidity sweeps are triggers for a volatile move. For example, the range high at $0.0000101 was swept on April 15 and was followed by multiple four-hour candlesticks closes below the $0.0000117 level. This buy-stop liquidity grab catalyzed a 14% downswing.
As Shiba Inu price slid lower, it swept $0.0000101 level and has rallied nearly 4% as of this writing. If history repeats, Shiba Inu price could be due for another retest of the range high at $0.0000117.
But if the buying pressure builds up and sustains, SHIB could extend higher and retest the $0.0000126 level, which is midpoint of the 38% crash between February 4 and March 10. This move would constitute a 22% ascent from the current level.
SHIB/USDT 4-hour chart
While the rally makes logical sense, things could go wrong if Shiba Inu price fails to manifest this bullish momentum. If SHIB produces a decisive four-hour candlestick close below $0.0000101 and flips it into a resistance level, it will invalidate the bullish thesis.
In such a case, Shiba Inu price could revisit the range low of the aforementioned 38% crash at $0.0000096.
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.
