The majority of crypto assets are trading down on Tuesday as short-term traders pulled profits. Shiba Inu (SHIB) recently exploded, rallying nearly 400% to reach highs of $0.00003535 on Oct. 7. This pushed the token to the no. 18 most valued cryptocurrency by market cap, according to coinmarket cap. At the time of writing, SHIB was trading lower like most digital assets, down 9% at $0.00002863. Shiba Inu seems to have more to look forward to as a petition from nearly 230,000 users calls for a listing of SHIB on the Robinhood app. A recent partnership with NowPayments.io aims to reduce the number of tokens in circulation by burning a percentage of SHIB tokens with each transaction. Notably, SHIB’s recent rise aligned with a reduction in its total supply. Shiboshis, a collection of 10,000 NFTs that will be minted on ShibaSwap aims to manually implement the ‘SHIB burn’. Whenever an NFT owner changes the name of one of the 10,000 “Shiboshi” NFTs, $100 worth of SHIB will be burnt.
Resistance Levels: $0.00004000, $0.00003535, $0.00003212
Support Levels: $0.00002736, $0.00002360, $0.00002000
SHIB/USD Daily Chart: Bullish
SHIB/USD Daily Chart
Shiba Inu spiked heavily after an 8-day bullish run brought its price closer to its all-time highs of $0.00003999. The SHIB/USD pair has formed a bullish pennant that might provide a further breakout to the upside above the Oct.7 high at $0.00003535 targeting the much-coveted $0.00004 and then $0.00006 levels. Further moves from its current level now are all about either retest or continuation. On a retest of $0.00003535 high, a continuation up may be expected.
Even if SHIB drops to $0.00002062, it will be a consolidation before a move up. The RSI is hovering around the 70 mark, suggesting an advantage to the bulls. On the contrary, a constriction within the pennant might further profit-taking from bulls. If that happens price will drop below $0.00002062 towards $0.00001651. Only below here, the SHIB/USD pair will be in neutral mode again. Further declines may seek to retest the MA 50 at $0.00001083.
SHIB/USD 4-Hour Chart: Bullish
SHIB/USD 4-Hour Chart
The SHIB/USD remains in sideways trade on the 4-hour chart with the price strongly consolidating around the $0.00002888 level. Further evidence is required of a breakdown below this level that could validate a correction towards the MA 50 at $0.00002477. To the upside, the potential for a bullish pennant pattern could indicate further gains. However, the fact that Shiba Inu has been consolidating near the current highs may suggest that bulls have decided to take a rest before continuing.
The RSI around the 50 neutral marks suggests possible consolidation. SHIB price needs to have a strong 4h close above $0.00003535 and only then the price might rally towards all-time highs of $0.00003999 and then $0.00005 levels. Overall, SHIB retains a neutral to bullish outlook, however, traders should keep an eye on the general market trends as this may impact SHIB price.
