Shiba Inu price presents a buying opportunity before SHIB rallies 30%
|- Shiba Inu price is at a potential reversal point and hints at a 30% upswing.
- In some cases, SHIB could provide an opportunity to accumulate at the retest of the $0.0000269 to $0.0000293 demand zone.
- A breakdown of the $0.0000269 support floor will invalidate the bullish thesis for the meme coin.
Shiba Inu price has been on a sideways movement after its recent run-up. Moreover, this consolidation comes after a retracement that puts SHIB in a deep discount mode, ready for a reversal.
Shiba Inu price ready for a U-turn
Shiba Inu price rose roughly 40% between December 20 and December 23, 2021, setting up a swing high at $0.0000399. This run-up collected the liquidity resting above the swing highs up to December 4.
As a result, SHIB experienced profit-taking, allowing it to retrace 18% to $0.0000327. Since then, Shiba Inu price has been consolidating without much volatility. Going forward, one of two things might happen, a reversal that triggers an uptrend for SHIB or a retest of the daily demand zone, ranging from $0.0000269 to $0.0000293.
In the former case, Shiba Inu price could be looking at an 18% run-up to the recent swing high at $0.0000399. Beyond this, the meme coin could retest the resistance barrier at $0.0000441, indicating a 30% gain from the current position - $0.0000339.
In the latter case, Shiba Inu price could retest the daily demand zone, setting up the triple bottom pattern, further adding weight to the reversal scenario. With this outlook in play, investors can expect SHIB to rally 36% to retest the December 23 swing high at $0.0000399.
SHIB/USDT 4-hour chart
On the other hand, if Shiba Inu price fails to hold above the demand zone, ranging from $0.0000269 to $0.0000293, it will indicate a weak buying pressure and indicate that investors are booking profits.
A four-hour candlestick close below $0.0000269 will produce a lower low, invalidating the bullish thesis for Shiba Inu price. In this case, SHIB could retest the immediate support level at $0.0000237.
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