Shiba Inu price eyes 40% upswing as SHIB downtrend faces exhaustion

Shiba Inu price has produced five lower highs over the past 20 days, suggesting a bearish regime.
A breakout from this downtrend will see SHIB tag $0.0000565 and $0.0000625 barriers.
A breakdown of the $0.0000360 support floor will invalidate the bullish thesis.

Shiba Inu price action is getting congested with each lower high, suggesting consolidation. If this development continues, SHIB will likely break out from the downtrend and result in an explosive upswing.

Shiba Inu price gathers steam

Shiba Inu price set up its all-time high at $0.0000885 on October 28, and since this point, it has created five lower highs, suggesting a full-fledged downtrend. A trend line connecting these swing points can be drawn, indicating a sloping resistance barrier.

The demand zone, extending from $0.0000328 to $0.0000446, will support the incoming selling pressure and provide Shiba Inu price with a base it needs. Market participants can expect buyers to accumulate SHIB at a discount and trigger an upswing.

A confirmation of this trend change will arrive after SHIB rallies at least 26% and shatters the declining trend line to produce a higher high above $0.0000565. Beyond this, Shiba Inu price will make a run for the crucial barrier at $0.0000625, constituting a 40% ascent from the said demand zone.

SHIB/USDT 1-day chart

While things are looking grim for Shiba Inu price, a breakdown of the $0.0000360 support floor will suggest that the buyers are not in control and that a deeper correction is likely. This move will also invalidate the bullish thesis and trigger a potential 20% crash to $0.00000285.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.