fxstreet.com
- Shiba Inu price is up around 6% in the last five days after pivoting around the $0.00000675 low following a slump.
- SHIB has 15% gains in sight but weak momentum and early profit taking limits this upside potential to a distant dream.
- Invalidation of the bearish thesis will occur after the meme coin records a three-day candlestick close above the $0.00000814 level.
Shiba Inu (SHIB) price is pulling north, in an attempted recovery rally after a steep fall. It comes as the broader market continues to navigate volatility resulting from the Spot Bitcoin exchange-traded fund (ETF) mania.
Shiba Inu price recovery rally likely short-lived
Shiba Inu (SHIB) price remains bearish, but is attempting a recovery rally, indicated by a 6% surge in just under a week. It comes after the price fell around 40% from an intra-day high of $0.00001136 recorded on August 11 to the floor price of $0.00000671 on October 10.
The surge is steered by buying pressure coming from the demand zone, which extends from $0.00000655 to $0.00000694. This order block is characterized by aggressive buying pressure that could facilitate an uptrend for SHIB if it is sustained. However, based on technical indicators, the recovery rally seems premature.
To begin with, the Relative Strength Index (RSI) remains below the 50 level, a bearish position, made worse by the Awesome Oscillator (AO) indicators being in the negative territory with red histogram bars. This points to a potential fall, likely sending Shiba Inu price below the critical support at $0.00000675. A three-day candlestick close below this level would put out the recovery rally.
In the dire case, the slump could extend for Shiba Inu price to collect buy-side liquidity residing underneath, potentially going as low as the $0.00000543 range low.
SHIB/USDT 3-day chart
On the other hand, if sidelined and late investors come in play, Shiba Inu price could extrapolate the gains, potentially reaching the supply zone, which extends from $0.00000786 to $0.00000837. A decisive break and close above the midline of this order block would confirm the uptrend.
In a highly bullish case, Shiba Inu price could fail the supply zone as a resistance zone by flipping it into a bullish breaker. The expanse of such a breakout could see SHIB target the $0.00000910 range high. Such a move would constitute a 25% climb above current levels.