- Shiba Inu price has a similar movement to Dogecoin and hints at a 15% upswing.
- Investors should consider booking profits at the retest of the $0.0000106 resistance level.
- A daily candlestick close below the $0.0000074 level will create a lower low and invalidate the bullish outlook for SHIB.
Shiba Inu price has breached its tight consolidation range after two weeks, indicating a shift in the narrative. The resurgence of buyers is clear with the direction of the recent move. This outlook will likely persist, pushing SHIB higher as the month-end volatility starts to kick in.
Shiba Inu price primed for more gains
Shiba Inu price set up three lower highs and lower lows since November 9, depicting a downtrend. However, on November 22, SHIB pierced the trend line connecting the said swing lows, denoting a breakout.
A 7% upswing was noted by the Dogecoin-killer after it confirmed a bullish resurgence.
Furthermore, the Relative Strength Index (RSI), the 11% run-up on November 22, seems to be a direct result of the bullish divergence. This technical formation is formed when the Shiba Inu price produces lower lows while RSI produces higher lows, denoting a rising bullish momentum.
This non-conformity suggests that a trend reversal is likely for Shiba Inu price.
Going forward, investors can expect SHIB to retest the $0.0000106 hurdle, denoting a 15% upswing for bulls. A flip of this level, however, will extend the run-up to $0.0000116, bringing the total gain to 25%.
SHIB/USDT 4-hour chart
While the bullish outlook is apparent, investors need to pay close attention to the $0.0000081 support level. A breakdown of this barrier will invalidate the bullish thesis for Shiba Inu price by producing a lower low.
In such a case, SHIB could slide 9% before approaching a stable support level at $0.0000074.