fxstreet.com
- Shiba Inu price seems to be stabilizing after a retest of the $0.0000096 support level.
- Investors can expect a 40% bounce to $0.0000171 if bulls make a comeback.
- A daily candlestick close below $0.0000096 will invalidate the bullish thesis for SHIB.
Shiba Inu price shattered three support levels as it crashed on April 25. On its way south, the sell-off exacerbate due to the UST depeg, causing SHIB to revisit levels last seen in late 2021. Regardless, things are looking optimal for a recovery rally for the dog-themed cryptocurrency.
Shiba Inu price prepares for a quick run-up
Shiba Inu price lost roughly 64% of its value between April 25 and May 12. Most of this downswing occurred on and after the first weekend of May. For SHIB, this meant filling the fair value gap that extended from $0.0000095 to $0.0000206.
While the inefficiency seems to have been purged, investors can expect Shiba Inu price to stabilize and recover. So far, SHIB has done exactly that. A recovery above the $0.0000096 support level was followed by a quick 36% run-up to where the asset currently trades - $0.0000123.
Going forward, investors can expect Shiba Inu price to follow Bitcoin’s lead and retest the $0.0000170 hurdle after a 40% run-up. While a move beyond this barrier is plausible, it is unlikely if the buyers fail to band together.
SHIB/USDT 1-day chart
Regardless of the optimism from buyers or holders, Shiba Inu bulls need to hold the line. A failure leading to a daily candlestick close below $0.0000096 will invalidate the bullish thesis for Shiba Inu price by producing a lower low. In such a case, SHIB could slide to retest the $0.0000072 support level for a 25% sell-off.