Shiba Inu Price Prediction: A pullback is not too far-fetched

Shiba Inu prices were down 4% on the day but remained 84% above the yearly opening price.
SHIB could be setting up for a 9% rally targeting the monthly open.
Invalidation of the bearish thesis would arise from a tag above $0.0001399.

Shiba Inu price shows reasons to practice caution as sudden changes in market behavior suggest a decline is on the way. This thesis utilizes technical analysis and indicators to forecast the next potential move for SHIB.

Shiba Inu price shows room for a pullback

Shiba Inu price is down 4% on the day as the bears have taken hold of a current trading range that has been developing throughout the last two weeks. Since January 1, the digital meme coin has rallied by 84%. While a 4% downswing seems like no big deal, evidence based on technical indicators suggests a larger pullback for the rally could occur.

Shiba Inu price currently auctions at $0.0001306. The decline occurred on a key resistance level on a Relative Strength Index and breached the 8-day exponential and 21-day simple moving average to the downside.

Considering these factors, an entire downswing is too far-fetched to call, but a 10% decline targeting the monthly open stands a fair chance of occurring.

SHIB/USDT 1-Day Chart

Based on the resistance formed near the mid $0.0001300 zone throughout the last two weeks, traders can use the swing high within the region at $0.0001399 to qualify the bearish potential. A breach above the barrier could induce a buying frenzy to challenge the monthly high at $0.0001575. The bullish scenario would pave the way for a 20% increase from SHIB's current price.

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.