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Shiba Inu price provides an opportunity for patient holders playing the long game

  • Shiba Inu price has been in an accumulation phase for more than a year. 
  • As SHIB approaches the lower limit of the consolidation, investors need to wait for trend reversal signs.
  • The long-term bullish outlook for the meme coin will go kaput if the $0.00000712 support level is flipped into a resistance level.

Shiba Inu price has been moving sideways for quite some time with no directional bias in sight. But this range tightening is reminiscent of the price action seen between May and September 2021, which resolved in an explosive move to the upside yielding a 1200% gain for patient SHIB holders. 

Also read: Shiba Inu price to rhyme with a 10% drop before the next recovery rally

Shiba Inu price continues to tighten its range

Shiba Inu price was stuck in a small range between May and September 2021. Near the end of the consolidation, while SHIB stayed in this range, the Relative Strength Index (RSI) recovered from being in the oversold region and started climbing higher. In hindsight, this move hinted that bulls were starting to wake up. 

Soon enough, Shiba Inu price kick-started a 1200% rally in the next month, which created a local top at $0.0000875. 

Likewise, the current consolidation for Shiba Inu price has been ongoing for more than a year after starting in May 2022. The RSI has recently dipped into the oversold zone region, which indicates that there is more time before SHIB catalyzes an explosive move to the upside. 

Assuming the RSI continues to climb higher, then the short-term target for Shiba Inu price include the $0.0000106. Beyond this hurdle, SHIB could also tag the $0.0000186 resistance level. In total, this move would constitute a 117% ascent.

SHIB/USDT 3-day chart

SHIB/USDT 3-day chart

Regardless of the positive outlook noted for Shiba Inu price in the above paragraphs, investors need to take it with a grain of salt due to the present market conditions. If Bitcoin price suffers a fatal setback, the negative effects will ripple out to altcoins, including SHIB.

If Shiba Inu price flips the $0.00000712 support level into a resistance level, it will create a lower low and invalidate the bullish outlook. Such a move could further trigger a correction to September 2021 low at $0.00000610.

Author

Akash Girimath

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.

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