- Shiba Inu price consolidates after rallying 60% since January 1.
- Higher time frame indicators suggest SHIB is in a make-or-break situation.
- A 3-day candlestick close above $0.00001280 would void the pullback scenario.
Shiba Inu price is cooling down after an impressive first leg up to start the new year. The technicals now suggest a pullback is on the horizon. Thus, traders should apply caution while trading the notorious meme coin.
Shiba Inu price in make-or-break
Shiba Inu price has created a new narrative for itself as the digital dog coin has risen by 60% since January 1. The surge has gone fully impulsive, creating a nearly vertical trendline.
Shiba Inu currently trades at $0.00001202. While the smaller time frames have shown a significant increase in volatility, the larger time frames are still waiting for a clear depiction of what lies ahead. The Relative Strength Index (RSI), an indicator used to gauge kinetic potential by comparing and contrasting previous swing points, shows the Shiba Inu price at a significant resistance level in the 3-day time frame.
At the time of writing, the SHIB rally is at the 70 levels on the RSI, a fundamental level where corrections usually occur. A 3-day candlestick close with the RSI above the 70 level would be a significant cue that the uptrend is the start of a much larger rally for the coming weeks. Because the SHIB token remains suppressed, the possibility of a retracement remains prevalent. A descending trendline that connects the August high at $0.00001800 and the October high at $0.00001519 coincides with the call for cautionary measures, as it is currently acting as resistance above Shiba Inu's price.
Considering these factors, it may be time to expect the anticipated pullback. The untested 21-day simple moving average is a plausible target positioned at $0.00001000. A retest of the barrier would result in an 18% decline from SHIB's current market value.
SHIB/USDT 3-day chart
A 3-day candlestick close above the ascending trend line at $0.0001280 or an RSI hurdle above 70 is needed to negate the bearish potential. If either scenario occurs, the bulls could continue north, targeting the October and August highs resulting in up to a 50% increase from the current Shiba Inu price.
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.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.