Shiba Inu price eyes 20% gains but upside remains capped

  • Shiba Inu price crashed 28% over four days and tagged the $0.0000224 to $0.0000233 demand zone.
  • Although SHIB could rally, the upside seems to be capped at the weekly resistance barrier at $0.0000283.
  • Investors can expect the meme coin to consolidate between these two barriers for the foreseeable future.

Shiba Inu price experienced a sell-off along with other altcoins in the market as Bitcoin price failed to sustain. As a result, SHIB has sliced through a crucial barrier and is currently bouncing off another one. 

Shiba Inu price gets stuck 

Shiba Inu price sliced through the $0.0000283 support level as it crashed 28% in roughly four days. This downswing is currently bouncing off the $0.0000233 barrier, which coincides with the $0.0000224 to $0.0000233 demand zone. 

This barrier provides a strong support and investors can expect SHIB to bounce off of it and trigger a quick run-up to the recently flipped weekly resistance barrier at $0.0000283. The move would constitute a 20% ascent but an upside beyond seems unlikely.

Therefore, market participants can expect the meme coin to slip into consolidation between these two barriers for the foreseeable future.

SHIB/USDT 4-hour chart

SHIB/USDT 4-hour chart

While things are looking mildly bullish for Shiba Inu price, it is due to Bitcoin price. A sudden uptick in selling pressure could sway the odds in favor of bears. If SHIB produces a four-hour candlestick close below $0.0000224, it will create a lower low and invalidate the bullish thesis.

In this case, Shiba Inu price could crash to retest the $0.0000202 support level, where bulls can lick their wounds in preparation for the next upswing.

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