Why Dogecoin-killer Shiba Inu Coin is primed for a 40% rally

Shiba Inu price continues to hover above a stable support level, indicating that the recent rally was no fluke. If bullish momentum seeps into the markets, there is a good chance the next upswing for SHIB will be explosive.

Shiba Inu price prepares for its next move

Shiba Inu price rallied 64% after retesting the $0.0000082 to $0.0000093 imbalance and set a swing high at $0.00000151. This move faced heavy profit-taking, resulting in the daily candlestick closing 15% lower at $0.00000129. Regardless of the sell-off, SHIB seems to be holding above the $0.0000118 support level.

This lingering action indicates that buyers are defending the level and is likely to induce Shiba Inu price into another rally, provided the market conditions are right. In such a case, the most obvious target is the equal highs at $0.0000189, roughly 39% away from the current position. 

Beyond this, Shiba Inu price will face two significant resistance levels - $0.0000199 and $0.0000211, both of which are ideal levels to book profits. 

SHIB/USDT 1-day chart

While things are looking up for Shiba Inu price, a breakdown of the immediate support level at $0.0000118 will be the first sign of weakness. This development should trigger doubt among buyers but a daily candlestick close below $0.0000103 will create a lower low and invalidate the bullish thesis.

Such a situation could further catalyze Shiba Inu price to slide 18% lower and retest the lower limit of the aforementioned imbalance at $0.0000082.