Shiba Inu price presents a buying opportunity before SHIB rallies 30%

Shiba Inu price is at a potential reversal point and hints at a 30% upswing.
In some cases, SHIB could provide an opportunity to accumulate at the retest of the $0.0000269 to $0.0000293 demand zone.
A breakdown of the $0.0000269 support floor will invalidate the bullish thesis for the meme coin.

Shiba Inu price has been on a sideways movement after its recent run-up. Moreover, this consolidation comes after a retracement that puts SHIB in a deep discount mode, ready for a reversal.

Shiba Inu price ready for a U-turn

Shiba Inu price rose roughly 40% between December 20 and December 23, 2021, setting up a swing high at $0.0000399. This run-up collected the liquidity resting above the swing highs up to December 4.

As a result, SHIB experienced profit-taking, allowing it to retrace 18% to $0.0000327. Since then, Shiba Inu price has been consolidating without much volatility. Going forward, one of two things might happen, a reversal that triggers an uptrend for SHIB or a retest of the daily demand zone, ranging from $0.0000269 to $0.0000293.

In the former case, Shiba Inu price could be looking at an 18% run-up to the recent swing high at $0.0000399. Beyond this, the meme coin could retest the resistance barrier at $0.0000441, indicating a 30% gain from the current position - $0.0000339.

In the latter case, Shiba Inu price could retest the daily demand zone, setting up the triple bottom pattern, further adding weight to the reversal scenario. With this outlook in play, investors can expect SHIB to rally 36% to retest the December 23 swing high at $0.0000399.

SHIB/USDT 4-hour chart

On the other hand, if Shiba Inu price fails to hold above the demand zone, ranging from $0.0000269 to $0.0000293, it will indicate a weak buying pressure and indicate that investors are booking profits.

A four-hour candlestick close below $0.0000269 will produce a lower low, invalidating the bullish thesis for Shiba Inu price. In this case, SHIB could retest the immediate support level at $0.0000237.

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.

Join Telegram