Shiba Inu price sets up a local top before its next leg up

Shiba Inu price failed to rally immediately after the drop on June 22. However, the next two days saw most of its gain. This move set up a temporary swing high and is currently heading lower to potentially create a higher low, indicating the start of an uptrend.

Shiba Inu price eyes a higher high

Shiba Inu price saw a steep downfall that ended on June 22 as it formed a bottom at $0.00000521. The recovery since then has come close to undoing this drawdown but failed as investors began booking profit and set up a local top at $0.00000739.

Since SHIB rallied 42% from the bottom at $0.00000521, a pullback seems likely. Although Shiba Inu price has already collapsed by 8.4%, it might reverse around the support floor at $0.00000625.

From this point, investors can expect the dog-themed cryptocurrency to advance 30% to tag the resistance level at $0.00000811. Following the breach of the said supply barrier, SHIB might retest the 50% Fibonacci retracement level at $0.00000871.

SHIB/USDT 4-hour chart

Regardless of the bullish market structure, if Shiba Inu price produces a decisive close below the support level at $0.00000625, it will dent the upswing narrative and probably delay it.

In certain circumstances, SHIB might retrace to retest the range low at $0.00000521 to produce an equal low, which will not invalidate the optimistic narrative.

However, a breakdown of $0.00000521 will trigger a bearish scenario that might push the meme coin to the immediate demand barrier at $0.00000420.