Why this move from Shiba Inu price could catch investors off guard?

Shiba Inu price shows that a minor bounce to $0.0000104 seems likely before triggering a downtrend.
A rejection at the aforementioned level could result in a 20% pullback that fills the FVG extending up to $0.0000082.
A four-hour candlestick close above $0.0000119 will invalidate the bearish outlook for SHIB.

Shiba Inu price prepares for a quick retracement after nearly a week of recovery bounce. While this run-up was impressive, things are likely going to go slow for SHIB as investors continue to book profits.

Shiba Inu price at a decisive moment

Shiba Inu price rallied 70% between June 19 and June 26, which showed that the buyers were optimistic around mid-June. The impressive recovery bounce set a swing high at $0.0000121 but failed to close above the June 21 swing high at $0.0000119, denoting a weakness.

Since this point, Shiba Inu price has dropped 18%. As a result, the Momentum Reversal Indicator (MRI) has flashed a green ‘one’ buy signal on the four-hour chart. This technical indicator forecasts a one-to-four green candlestick upswing for SHIB.

However, since this signal has appeared on a lower time frame, it is unstable. Regardless, a minor uptick in buying pressure could push SHIB to retest the $0.0000104 hurdle. A rejection here is key and could trigger the next leg-down.

Such a development could see Shiba Inu price drop lower and retest the $0.0000095 support level. This barrier can obstruct the bears’ view, but a breakdown seems obvious so that the fair value gap (FVG) aka the price inefficiency, extending from $0.000093 to $0.0000082 is filled.

In total, this downswing could constitute a 20% descent from $0.0000104.

SHIB/USDT 4-hour chart

While things might seem bearish at first glance, investors need to note that a higher high above the recent swing high could indicate the presence of buyers and keep bears at bay. If Shiba Inu price produces a four-hour candlestick close above $0.0000119, it will invalidate the bearish outlook.

In such a case, Shiba Inu price could continue its ascent to $0.0000139, which would constitute a 16% ascent from $0.0000196.

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.