Shiba Inu price mulls over the next 50% rally

Shiba Inu price consolidates after undoing the recent 33% upswing.
A retest of the volume point of control at $0.0000118 could be key in triggering another 50% rally.
A daily candlestick close below $0.0000118 will invalidate the bullish thesis.

Shiba Inu price seems to be back at square one after undoing its recent yet explosive rally. This development comes as Bitcoin price also tumbled down from $25,000. However, the meme coin is likely to provide another opportunity before triggering an aggressive rally.

Shiba Inu price finds launchpad

Shiba Inu price inflated by nearly 35% in a single daily candlestick on August 14 and set up a swing high at $0.0000180. While this impressive rally was seen in Dogecoin price afterwards, SHIB seems to have lost its momentum, leading to a reversal.

Roughly four days later, the gins witnessed were completely undone due to an increase in selling pressure from investors booking profits.

The ongoing SHIB retracement is likely to move a little lower and retest the point of control (POC) at $0.0000118, which serves as a support floor. Since this point is the highest traded volume level, it will likely induce Shiba Inu buyers to step up and absorb the incoming selling pressure.

Such a development could see SHIB trigger a minor rally, which market participants can capitalize on. The resulting uptrend could push Shiba Inu price to either create a double top at $0.0000180 or push through it and set up a swing high at $0.0000200. This move could constitute a 50% upswing.

SHIB/USDT 4-hour chart

On the other hand, if Shiba Inu price fails to stay above the POC at $0.0000118, it will denote a surging seller activity. In such a case, a daily candlestick close below the aforementioned level will invalidate the SHIB recovery outlook and potentially trigger a 10% drop to retest the $0.0000106 foothold.

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.