- Shiba Inu price tests critical Ichimoku support levels.
- Nearby resistance becomes increasingly weaker, enhancing the likelihood of a bull breakout.
- Limited downside risks ahead.
Shiba Inu price action has outperformed a good chunk of the altcoin market. SHIBA has performed admirably despite experiencing intense selling pressure leading up to and after the US CPI data last Thursday. Most importantly, it has held onto the daily Tenkan-Sen as its primary support level.
Shiba Inu price could repeat the same breakout it experienced in October 2021
Shiba Inu price is positioning itself for one of the most sought-after buy entry setups within the Ichimoku Kinko Hyo system: the Ideal Bullish Ichimoku Breakout. The Ideal Bullish Ichimoku Breakout was the entry setup that initiated the rally in October 2021. The rules for this setup are as follows:
- The current close is above the Tenkan-Sen and Kijun-Sen.
- The Tenkan-Sen is above the Kijun-Sen
- If the Tenkan-Sen is below the Kijun-Sen, then the Tenkan-Sen must be pointing up while the Kijun-Sen is flat or pointing down.
- The current close is above the Cloud (Senkou Span A and Senkou Span B).
- Future Senkou Span A is above Future Senkou Span B
- If Future Senkou Senkou Span A is below Future Senkou Span B, then Future Senkou Span A must be pointing up while Future Senkou Span B is pointing flat or pointing down.
- The Chikou Span is above the bodies of the candlesticks and in open space (open space is a condition where the Chikou Span won’t intercept the body of a candlestick over the next five to ten periods, horizontally).
All of the conditions above, save one, are fulfilled. The last puzzle piece is the current daily candlestick closing above the Ichimoku Cloud. For that to happen today, Shiba Inu price would need to close at $0.000040. However, by February 16, that threshold drops to $0.000032.
SHIBA/USDT Daily Ichimoku Kinko Hyo Chart
If bulls close Shiba Inu price above the Cloud, the next resistance zone would likely be the 100% Fibonacci expansion at $0.000045.
Downside risks for Shiba Inu price remain but are likely limited to the Kijun-Sen at $0.000026 or the lows of the prior range at $0.000021. A daily close at or below $0.000020 would invalidate any near-term bullish outlook.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.