Shiba Inu Price Prediction: SHIB primed for 10% rally
|- Shiba Inu price has breached a declining trendline, suggesting strong signs of bullish momentum on the daily time frame.
- A pullback to the $0.00920 support level seems likely before SHIB triggers a quick 10% bounce.
- In some cases, SHIB could slide as low as $0.00872 before rallying, bringing the total gain to 15%.
- Invalidation of the bullish thesis will occur if the dog-themed crypto flips $0.00872.
Shiba Inu (SHIB) price has been on a downtrend for the last two months. However, the recent slowdown and sideways movement have led to a positive development that forecasts SHIB is likely to move higher.
Also read: Dogecoin price eyes double digit gains as DOGE bulls make a comeback
Shiba Inu price coils up for a bounce
Shiba Inu price shed 32% between December 17, 2023, and January 3, 2024. Connecting the lower highs formed during that down move traces a declining trend line, which serves as a dynamic resistance level.
Shiba Inu breached this trend line on February 8 and then saw its price rally 8.50%. It is currently retracing, probably in preparation for the next up leg. The $0.00920 level is the first key support level that could serve as a launchpad for a bounce.
If there is a spike in selling pressure across the board, however, then SHIB could retrace even lower before bouncing, collecting the sell-side liquidity below $0.00872. A quick liquidity run below this level, followed by a recovery, will be the first sign of an uptrend.
The eventual upside target for Shiba Inu price is the weekly resistance level at $0.0102, roughly 10% away from $0.00920 and 15% from $0.00872.
The Relative Strength Index and Awesome Oscillator are both showcasing a surge in bullish momentum, supporting the optimistic outlook noted above.
Also read: Dogecoin price struggles to recover despite fast-paced wallet growth
SHIB/USDT 1-day chart
While a sweep of $0.0872 will allow sidelined buyers a buying opportunity, a failure to recover above $0.00872 will signal a weak bullish camp. If SHIB flips the aforementioned level into a resistance level, it will invalidate the bullish thesis by producing a lower low.
In such a case, Shiba Inu price could slide 6% to retest the $0.00821 support level.
Read more: Shiba Inu renews focus on digital identity in Shibarium for 2024
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.