|

Shiba Inu price sets the stage for a long-term play

  • Shiba Inu price shows bear trend persistence after the recent breakdown of the support confluence at $0.0000118.
  • A continuation of the selling pressure could see SHIB drop 25% to $0.0000083.
  • The bearish thesis will face invalidation if the meme coin flips the $0.0000118 hurdle into a support floor.

Shiba Inu price has breached a critical support confluence, indicating a shift in momentum from bulls to bears. This development comes after undoing the mid-August gains and could set the trend until SHIB finds a stable support level to bounce off of. 

Shiba Inu price and its launch pad

Shiba Inu price plunged below a critical support confluence at $0.0000118 after four weeks of grappling with it. This development might look like a bearish move, but if this trend continues, it will set SHIB up for a long-term play.

For now, Shiba Inu price can drop 20% before encountering the imbalance, aka the fair value gap (FVG), extending from $0.0000092 to $0.0000083. A retest of this area will be an ideal place for buyers to step in and trigger a trend reversal.

The chart below shows that the market makers could target the liquidity resting above the equal highs at $0.0000179 for a long-term play, indicating the total potential gain for investors is roughly 95%. 

SHIB/USDT 4-hour chart

SHIB/USDT 4-hour chart

There are two ways this setup could ruin; the first one is by a premature rally in Shiba Inu price and the second one involves SHIB flipping the $0.0000087 support level into a resistance barrier.

While the former scenario does provide an opportunity to squeeze gains, the second outlook would invalidate the bullish outlook for SHIB. 

Note:

This video explains the short-term and long-term outlook for Shiba Inu and how you can position yourself accordingly.

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.

More from Akash Girimath
Share:

Editor's Picks

Injective: Mounting selling pressure threatens a long-term support trendline
Injective (INJ) extends losses below $7.50 at press time on Thursday, attracting sellers after the previous day’s 6% decline. The derivatives market shows a sell-side bias among traders, as market orders continue to sweep resting bids amid declining Open Interest in INJ futures. The technical outlook for INJ is mixed, with a key support trendline in focus.
Bitcoin under pressure as MSCI removes Strategy from global indexes, puts billions in fund flows at risk

Bitcoin remains under pressure, trading below $73,800 on Thursday after correcting over 1.5% so far this week. Bearish sentiment grew after news on Wednesday that MSCI, the global index provider, announced it will drop Strategy and other BTC-holding companies from global indexes, putting billions in fund flows at risk.

MSCI drops Strategy from indexes: What it means for Bitcoin

Strategy and Bitcoin came under fresh pressure late Wednesday after MSCI finalized its decision to remove the Bitcoin treasury company from its global indexes, raising concerns about potential selling pressure on MSTR shares and its future Bitcoin purchases.

Meme Coins Price Prediction: Dogecoin, Shiba Inu, and Pepe have yet to find a floor
Meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), continue to attract sellers as the broader cryptocurrency market maintains a risk-off sentiment. Bitcoin (BTC) slipped below $75,000 this week amid hot US inflation reports, adding to last week’s uncertainty over tighter regulation as Democrats won the midterms.
Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss
Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. Persistent outflows from US-listed BTC spot Exchange Traded Funds (ETFs), a sharp sell-off in US technology stocks, and rising market liquidations are weighing on sentiment and limiting Crypto King’s recovery attempts.