Shiba Inu price edges closer to a 25% crash

(Akash Girimath – FXStreet)

– Shiba Inu price slides closer to retest inclined trend line and the $0.0000118 support level.

– A breakdown of this confluence could trigger a 25% crash to $0.0000093.

– While the short-term outlook is bearish, the downswing could be followed by a 95% rebound to $0.0000179.

Shiba Inu price shows a strong adherence to the immediate support level despite the recent crash. Investors need to be careful, however, as in its current position SHIB could go either way.

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Shiba Inu price lacks volatility

Shiba Inu price looks too boring to trade on a lower time frame as it seems to hover mindlessly above the $0.0000118 support level. This has been the case for a little over a month now, in which it has created a string of marginally inclining higher lows.

A support trend line can be drawn using these swing lows and coincides closely with the $0.0000118 support level, creating a confluence. As SHIB edges close to retesting this barrier, it could also provide an opportunity to short, especially if it breaks below.

In such a case, investors can expect Shiba Inu price to trigger a 27% decline to $0.0000093, which is the start of an area of imbalance, aka Fair Value Gap ((FVG), that extends down to $0.0000083.

Enter: SHIB and the long game

While the short-term outlook is bearish no doubt, with meme coins such as SHIB investors need to play the long game. Thus, after Shiba Inu price revisits the FVG, extending from $0.0000083 to $0.0000093, traders’ thoughts may turn to the equal highs formed at $0.0000179

From a market makers’ perspective, the buy-stop liquidity resting above the equal highs at $0.0000179 presents a tantalizing next objective. As such, the FVG could provide the perfect buy zone for traders looking to enter the market and speculate on the next bullish move.

If SHIB retests $0.0000179, it will constitute a 95% gain and is likely where the upside could be capped for the dog-themed crypto.

A daily candlestick close below $0.0000087 without a quick recovery will threaten this long-term play. However, a breakdown of the $0.0000083 would invalidate the bullish thesis and potentially trigger a crash to $0.0000074.