Dogecoin-Killer Shiba Inu Price Revisits Level That Catalyzed 400% Rally, Will SHIB Bounce?
Highlights
- SHIB is approaching a key value area that previously triggered a 388% rally.
- The current retest of the value area's upper limit at $0.00001256 is unlikely to trigger a massive recovery rally.
- Bearish momentum indicators (RSI and AO) suggest a seller-controlled market condition.
Shiba (SHIB) price analysis reveals a key level that triggered a 388% rally in just ten days. Will the sidelined buyers step in and catalyze a bounce for SHIB, the so-called Dogecoin-killer?
Shiba Inu Price Approaches Highly Sensitive Level
Coingecko’s price data shows that Shiba Inu price is trading at $0.00001288 after dropping nearly 28% in the past three weeks. This collapse brings SHIB closer to a key value area that previously catalyzed a 388% rally.
Why is this area important? Shiba Inu price consolidation between May 13, 2022, and February 24, 2024, created a tight range. A breakout from this zone triggered a nearly 400% rally for SHIB, reaching $0.00004567. Adding a volume profile to this range reveals that the value area, where 70% of the volume is traded, lies between $0.00001256 and $0.00000837. The highest traded volume level in this area is present at $0.00001090 and is referred to as the Point of Control (POC).
- The first retest of this POC on August 5, 2024, resulted in a 210% bounce to $0.00003343.
- The second retest resulted in a 44% recovery rally.
- The third revisit was a deviation below the POC that catalyzed a 71% move.
Technical Analysis: Will SHIB Bounce?
With every retest, the value area and the POC’s effect of producing a bounce will grow weaker, reducing the chances of a bounce. Hence, SHIB, which is retesting the value area’s upper limit at $0.00001256, is unlikely to trigger a massive recovery rally. Any meaningful uptrend is likely to be met with headwinds due to the recent Bitcoin crash.
To make matters worse, the Relative Strength Index (RSI) has flipped below the mean level and is approaching the oversold level, indicating a seller-controlled market condition. The same bearish momentum is depicted by the Awesome Oscillator’s (AO) red histograms growing in size below the zero level.
Hence, investors can assume that the probability of a SHIB bounce either at $0.00001256 or $0.00001090 are low.
What Can Investors Expect From Dogecoin-Killer?
Despite a revisit of a promising level, investors should not expect a lot from Shiba Inu bulls. Acceptance below the value area’s upper limit at $0.00001256 could trigger a swift 33.3% correction to value area’s lower limit at $0.00000837.
For a long term price prediction for Shiba Inu (SHIB) between 2025 and 2030: Read This
Frequently Asked Questions (FAQs)
1. What is the key level for SHIB?
2. Will SHIB bounce back?
3. What if SHIB fails to hold $0.00001256?
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