|

This new entry trigger could kick-start a 60% upswing for Shiba Inu price

  • Shiba Inu price set up a lower high after a 13% uptrend, suggesting a lack of bullish momentum.
  • The sidelined buyers have another chance to accumulate as the MRI hints at a minor downtrend.
  • A daily candlestick close below $0.0000157 will invalidate the bullish thesis for SHIB.

Shiba Inu price rallied after breaching its downtrend but seems to be without any enthusiasm. The uptrend failed to set up a higher high and is likely to retrace lower. Considering the incoming retracement, it will allow sidelined buyers another opportunity to accumulate before another explosive rally originates.

Shiba Inu price awaits volatility 

Shiba Inu price was stuck trading under a declining trend line for more than a month. This price action was similar to the downtrend that extended from October 28, 2021, to February 8. The breakout from the larger downswing led to an explosive run-up, hinting that a similar breakout for the smaller downtrend could also trigger an exponential run.

So far, SHIB has breached the downtrend on March 18 but has failed to set up a higher high. While this development might seem bearish, it is not. The Momentum Reversal Indicator (MRI) has flashed a red ‘one’ sell signal, indicating that a one-to-four candlestick downtrend is likely.

If true, it will provide sidelined buyers an opportunity to accumulate Shiba Inu at a discounted price. A resurgence of buyers will allow Shiba Inu price to kick-start an explosive move to $0.0000283; clearing this will suggest that bulls could propel the meme coin to $0.0000392, bringing the total gain to nearly 60% from the current position - $0.0000247.

SHIB/USDT 1-day chart

SHIB/USDT 1-day chart

Regardless of the bullish outlook for Shiba Inu price, a failure to move beyond $0.0000283 will indicate a weakness on buyers’ part and could lead to bears taking over.

A daily candlestick close below $0.0000157 will invalidate the bullish thesis for Shiba Inu price. This move will open the path for bears to crash SHIB by 15% before retesting the $0.0000135 support level.

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:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.