Why Dogecoin-killer Shiba Inu may return to $0.00001

Shiba Inu price has maintained most of its gains from last week's flash crash lows.
SHIBA's congestion creates opportunities for the long and short sides of the market.
Upside potential is the most unlikely direction as downside risks remain a concern.

Shiba Inu price continues to consolidate after last week's flash crash. However, despite a flurry of activity across the cryptocurrency market, SHIBA has not seen any marked difference in volume participation – a possible warning signal for bulls.

Shiba Inu price is likely to retest the $0.000016 value area – but a move further south is more probable

Shiba Inu price action, from the perspective of the Ichimoku Kinko Hyo system, is decidedly bearish. On its 3-week, weekly, and daily charts, SHIBA is below all of the Ichimoku indicators. However, a mean reversion higher is very likely because of how swiftly and dramatically SHIBA moved last week.

An extremely important time cycle within the Ichimoku system may trigger a big move for Shiba Inu price. There is a Kumo Twist present today on the daily chart. Kumo Twists are occurrences when Senkou span A crosses Senkou Span B – visually, this is identified when the Cloud changes color from red to green or green to red.

Kumo Twists can often give traders and analysts a 'heads up to where an important swing high or low may develop – especially if the instrument was trending strongly into when the Kumo Twist occurs. For Shiba Inu price, this means that SHIBA could see a dramatic drive higher to cover the large gap between the Kijun-Sen and the bodies of the daily candlesticks - but probably not until SHIBA hits new lower lows.

SHIBA/USDT Daily Ichimoku Kinko Hyo Chart

Upside potential for Shiba Inu price in the event of any bullish momentum will likely be capped near the $0.000016 value area where the 100% Fibonacci expansion and daily Kijun-Sen currently exist.

Downs risks for SHIBA remain the most likely direction due to its position within the Ichimoku system but may be limited to the $0.000010 range.

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