Shiba Inu price eyes 23% gain as SHIB coils up
|- Shiba Inu price has been consolidating for roughly eleven days, suggesting a lack of volatility.
- Due to the coil up, investors can expect SHIB to witness a 23% ascent that could retest the 200-day SMA at $0.0000254.
- A breakdown of the $0.0000158 support level will invalidate the bullish thesis.
Shiba Inu price witnessed a massive sell-off as the crypto markets descended into chaos between January 20 and January 22. While many altcoins have recovered SHIB seems to be coiling up, hinting at a breakout move.
Shiba Inu price heats up
Shiba Inu price dropped 36% between January 21 and January 22, dipping its toes into the daily demand zone, extending from $0.0000158 to $0.0000193. As a result, SHIB recovered just above the said barrier and started coiling up.
Even after ten days of consolidation, SHIB seems to be showing no signs of a breakout. However, when it does, investors can expect the meme coin to make a 23% run for the immediate resistance barrier at $0.0000254 aka the 200-day Simple Moving Average (SMA).
In some cases, although unlikely, Shiba Inu price could extend beyond this barrier and retest the weekly resistance level at $0.0000283, roughly coinciding with the 50-day SMA. This move would bring the total gain from 23% to 36%.
SHIB/USDT 1-day chart
While things are looking up for Shiba Inu price from a technical perspective, a breakdown could result in the retest of the $0.0000158 to $0.0000193 demand zone. Here, buyers have another chance at an uptrend, but failing to pull through could likely result in a daily candlestick close below from $0.0000158, which will produce a lower low, invalidating the bullish thesis.
This development could see Shiba Inu price retest the $0.0000135 support level, where bulls can band together for another upswing.
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.