Source : coingape.com
Shiba Inu price appears prepared to move higher as it sits on crucial support levels. This move has prepared SHIB for move upwards, and the confirmation of the upswing will be achieved after the price of the meme coin records a higher high.
Shiba Inu Price Prepares For An Upswing
SHIB dropped 47% from highs of around $0.00005522 on November 30 to lows of about $0.00002960 on December 04, as the crypto market went through a flash crash. The move saw Shiba Inu price tank below the 50-period Simple Movign Average (SMA) to seek solace from the 100 SMA. SHIB bulls have since recovered 17% of these losses to the current price around $0.00003433.
Shiba Inu price has been consolidating between the $0.0000340 support wall and the $0.00003809 resistance level as seen on the four-hour chart.
This consolidation is validated by the horizontal price action, and the flattening of the moving averages. Also, the sideways movement of the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators point to a consolidation in the Shiba Inu price.
A rise above the $0.00003809 could see SHIB rise to tag the 38.2 Fibonacci retracement level at $0.00003890. A rise above this level could see the price of the “Doge-Killer/2 rise to tag the 50% Fibonacci retracement level to $0.00004181, about 23% upswing from the current price.
Beyond this point, it would mean that SHIB is comfortably in the hands of ten bulls as it makes a full recovery towards the November 30 high around $0.00005522. This would represent a 60% recovery from the current price.
SHIB/USD Four-Hour Chart
On the flipside, failure to set a higher high above the $0.00003809 resistance level may trigger massive sell orders invalidating the bullish outlook. If this happens, SHIB could correct towards the immediate support around $0.0000340.
Here, the consolidation will continue as the buyers get another chance at an upswing. However, if Shiba Inu produces a lower low below $0.0000295, it will invalidate the bullish thesis causing the price to tank towards the $0.000020 psychological level.