Shiba Inu, one of the so-called “Dogecoin killers,” signals a hot crypto summer

  • Shiba Inu price sees bulls making a fist and preparing for a massive rally.
  • SHIB price could start the first phase of a full recovery towards levels from 2021.
  • Expect a bullish break out of the pennant and an appreciation towards $0.00001708.

Shiba Inu (SHIB) price is set to start an outperformance after the crypto winter that put investors and bulls in hibernation since March of this year. As more signs point to a turnaround, it is time to put money to work for investors as price action gets underpinned, with $0.00001100 aligning as the line in the sand and the monthly S2 support level as additional support. Expect the pennant to unfold into a breakout above $0.00001400, stretching towards $0.00001708, which will trigger some profit-taking after making over 40% gains.

SHIB price set to stretch gains by around 40%

Shiba Inu price is gaining support from bulls and investors buying the dip alongside an ascending trendline since mid-May. A descending trendline is being formed to the upside but instead looks weak as the ascending one has had over three to four tests followed by a rebound each time, where the upside cap only had one single test, which makes it more questionable. With that, bulls are taking control of the price action and are set to break above $0.00001400 as demand will further pick up, and dollar weakness will be a booster for SHIB price action. 

SHIB price is thus set to pair back the losses from May 13 after fulfilling the pennant as a swing trade. From there, it will be essential to see how the different moving parts in the background behave to determine how slowly or quickly the rally unfolds. In a perfect scenario, $0.00001708 could be tested to the upside by the end of the week, in another scenario, it could take until the end of June in a more whipsaw scenario with the Relative Strength Index (RSI) very slowly rising towards overbought.

SHIB/USD daily chart

As mentioned in the previous paragraph, there are many moving parts in the background, with several unresolved geopolitical events also impacting price action. Should headlines come out which stem investors’ enthusiasm, expect to see an exodus of investor cash and a drop back towards $0.00001044 and possibly a flirtation with $0.00001000. Ample support is expected at $0.00000965, which, once broken, could engender further deterioration.