Shiba Inu to revive bullish outlook if SHIB holds above this critical support level


  • Shiba Inu price continues to trend lower as it records lower lows, failing to reverse the period of underperformance.
  • However, the prevailing chart pattern suggests that SHIB could be preparing for a 42% surge if it tackles the remaining resistances ahead.
  • The canine-themed token must hold above $0.00003457 to avoid invalidating the bullish outlook.

Shiba Inu price action has failed to galvanize investors’ enthusiasm as SHIB continues to create lower lows and lower highs. Although the canine-themed token’s momentum has shifted to the downside, the prevailing chart pattern suggests that a slice above $0.00004457 could put a 42% rise on the radar.

Shiba Inu price eyes 42% ascent

Shiba Inu price has formed a falling wedge pattern on the 12-hour chart, suggesting a bullish outlook for the token. The governing technical pattern indicates that SHIB could surge 42% toward the 61.8% Fibonacci retracement level at $0.00006363 if the dog-themed coin slices above the pattern’s topside trend line at $0.00004457.

Before Shiba Inu price could reach the aforementioned optimistic target, SHIB has a few obstacles to tackle ahead. The first area of resistance for the token is at the 21 twelve-hour Simple Moving Average (SMA) at $0.00004337, then at the 100 twelve-hour SMA at $0.00004538, before it confronts the upper boundary of the prevailing chart pattern at $0.00004457.

If Shiba Inu price manages to slice above the aforementioned resistances, additional hurdles may emerge before the token reaches the bullish target. The following obstacles for SHIB are at the 38.2% Fibonacci retracement level at $0.00004819, then at the 50 twelve-hour SMA at $0.00004991, then at the 50% retracement level at $0.00005591.

SHIBUSDT

SHIB/USDT 12-hour chart

However, if selling pressure increases, Shiba Inu price could retest critical support levels before restoring its uptrend. The first line of defense for SHIB is at the 23.6% Fibonacci retracement level at $0.00003864. The lower boundary of the falling wedge pattern at $0.00003457 would act as a crucial foothold for the token, as breaking below this level would invalidate the bullish outlook.

If Shiba Inu price witnesses a catastrophic sell-off, SHIB could fall further, reaching the 200 twelve-hour SMA at $0.00002695, which sits near the support line given by the Momentum Reversal Indicator (MRI).

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin struggles against resistance as bulls keep their eye on $40,000

Bitcoin price action faced intense selling pressure after the Fed’s decision, with Bitcoin losing more than 5% from its Wednesday high. If the sell-off from the top wasn’t discouraging enough for bulls, then the daily close in the red certainly added insult to injury. 

More Bitcoin news

Crypto.com bulls maintain tentative support zone as CRO bulls target $0.50

Crypto.com price continues to face challenges above the $0.40 price level. Strong selling against the Tenkan-Sen at $0.40 tests buyers' conviction – failure to break above the Tenkan-Sen signals continued weakness.

More Crypto.com news

Polkadot price develops support to return to $30

Polkadot price is holding, so far, the $20 value area as its primary support zone. The recent downtrend and sell-off in the cryptocurrency market has positioned DOT in a strong support zone and one that will likely create the bottom it needs to pursue its next uptrend.

More Polkadot news

Ripple buys back $200 million worth of shares, set to go public at the end of the lawsuit

Ripple bought back $200 million worth of Series C shares from its lead investor, a UK-based investor firm. The payments giant strengthened its balance sheet, set to go public at the end of the SEC vs. Ripple lawsuit.

More Ripple news

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP