Shiba Inu prices appear poised to rise as they rest on critical support levels. This move has primed SHIB for an upward move, and the confirmation of the upswing will come after the meme coin’s price records a higher high.
Shiba Inu Prices Are Expected to Rise
As the crypto market experienced a flash crash, SHIB fell 47 percent from highs of around $0.00005522 on November 30 to lows of around $0.00002960 on December 4. Shiba Inu prices fell below the 50-period Simple Moving Average (SMA) and sought refuge in the 100 SMA. SHIB bulls have since recovered 17% of these losses, bringing the price to around $0.00003433.
On the four-hour chart, Shiba Inu price has been consolidating between the $0.0000340 support wall and the $0.00003809 resistance level.
The horizontal price action and the flattening of the moving averages validate this consolidation. In addition, the sideways movement of the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators indicate a price consolidation in the Shiba Inu.
SHIB could reach the 38.2 Fibonacci retracement level at $0.00003890 if it rises above $0.00003809. If the price of the “Doge-Killer/2” rises above this level, it will reach the 50 percent Fibonacci retracement level of $0.00004181, representing a 23 percent increase from the current price.
Beyond this point, SHIB would be in the hands of ten bulls as it makes a full recovery towards the November 30 high of $0.00005522. This would represent a 60% increase over the current price.
Four-Hour SHIB/USD Chart
On the other hand, failure to set a higher high above the $0.00003809 resistance level may result in massive sell orders, rendering the bullish outlook invalid. If this occurs, SHIB may correct to the immediate support level of $0.0000340.
Consolidation will continue in this area as buyers get another chance at an upswing. However, if Shiba Inu makes a lower low below $0.0000295, the bullish thesis will be invalidated, causing the price to fall towards the psychological level of $0.000020.