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

Shiba Inu (SHIB) price has been on a downtrend since mid-April after SHIB broke off from a month-long consolidation, during which Pepe (PEPE) frenzy dominated the market. However, due to a lack of real-life use cases, PEPE ran out of gas, leaving industry peers like Shiba Inu in charge of the meme coin ecosystem.

Also Read: SHIB vs. PEPE: Why Pepe could never dethrone Shiba Inu

Shiba Inu price plans a rebound rally

Shiba Inu (SHIB) price appears to be moving with a plan as bulls wait to buy SHIB at the discounted price of around $0.0000080. Notice that this had happened twice before on the daily timeframe when the meme coin waited for bulls to acquire sufficient liquidity to sustain the uptrend. The ensuing rally sent SHIB nothing short of 80% north, making a run-up to the $0.0000148 plausible.

At the time of writing, Shiba Inu is auctioning at $0.0000086, a daily drop of 0.2% with signs of a continued downtrend.

As shown in the daily chart below, Shiba Inu price faces strong selling pressure from the 50-, 100-, and 200-day Exponential Moving Average (EMA) at $0.0000099, $0.0000103, and $0.0.0000109 levels, respectively, which could repel SHIB and cause a retracement of the immediate support at $0.0000080 before a pullback.

The outlook is supported by the southbound direction of the three EMA and the Relative Strength Index (RSI), indicating that this was the path with the least resistance for now.

SHIB/USDT 1-day chart

On-chain metrics

IntoTheBlock’s Global In/Out of the Money (GIOM) suggests that SHIB’s recovery rally after the bounce at $0.0000080 could see the meme coin hit $0.0000131.

However, for the bulls to be confident of the bullish Shiba Inu price prediction, SHIB must first clear the initial resistance presented by the 50-day EMA at $0.0000099. Nevertheless, profit-taking by 378,009 addresses that bought 286.19 trillion SHIB tokens at an average price of $0.0000110 may prevent it. 

The bulls can garner enough momentum to push for the $0.0000131 target if the positive SHIB price prediction plays out.

Still, the bears could invalidate the positive stance if Shiba Inu price breaks unexpectedly below $0.0000080. Although 139,410 addresses that bought 49.99 trillion SHIB tokens at an average price of $0.0000060 can offer support.

If that support level breaks, the bullish Uniswap price prediction could be invalidated, triggering a larger drop toward the psychological $0.0000076.