- Shiba Inu price managed to rise on the macro scale to trade around $0.00001300.
- The meme token seems to be forming a hidden bullish divergence with the Relative Strength Index (RSI).
- If SHIB fails to breach the immediate resistance and slips below the critical support at $0.00001182, the bullish thesis would be invalidated.
Shiba Inu price noted a decent recovery at the beginning of the year. The meme token has since observed a pullback in value, which gave SHIB traders the impression that a downtrend might be on the way. However, the current conditions of the market actually indicate a rather opposite price momentum.
Shiba Inu price could shoot upwards
Shiba Inu price at the time of writing could be seen hovering around $0.00001300, nearing the immediate resistance at $0.00001395. The cryptocurrency rose by more than 84% in the span of a month before the altcoin observed a pullback in its price. Consequently, SHIB dropped from the high of $0.00001472 to its current trading price.
However, this pullback was actually forming a bullish setup, which was not apparent until it was completely formed. The repetition of higher lows on the Shiba Inu price chart and the lower lows noted on the Relative Strength Index (RSI) indicator highlighted the formation of a hidden bullish divergence. Such setups only take place after some pullback or consolidation.
The bullish divergence here suggests that the Shiba Inu price still has some upside momentum left to it. This would indicate that SHIB could be charting more gains before another outback is noted, which would still be a sign of profit-taking and not dedicated selling.
If the prior uptrend, which sent SHIB from $0.00000797 to $0.00001300, continues down the line, the altcoin might be in for a considerable rally. If buyers support the narrative and the immediate resistance at $0.00001395 is flipped into support, the Shiba Inu price would have a chance to rise further.
The next target would be the critical resistance at $0.00001695, which, if reached, would mark a six-month high for the meme token and result in the altcoin charting a 30% rally from the current market value.
SHIB/USD 1-day chart
But if the breach of the immediate resistance fails, a decline toward $0.00001182 would be quite likely. The price level also marks the critical support for SHIB, where the 200-day and 50-day Exponential Moving Averages (EMAs) coincide. Losing this support would lead to the invalidation of the bullish thesis, resulting in a potential 25% drop to $0.00000968.
