Shiba Inu Price Analysis: Will SHIB Rally After Addressing this Imbalance?

Shiba Inu Price Analysis: Will SHIB Rally After Addressing This Imbalance?

Shiba Inu (SHIB) has seen a 0.7% increase in price over the past 24 hours, trading at approximately $0.00001669 during European business hours on Wednesday. This price uptick aligns with a broader market upturn, driven by Bitcoin’s recovery. SHIB was notably impacted by Bitcoin’s previous price crash.

On June 14, SHIB’s price broke out of a descending triangle, falling to $0.00001266. However, it has since risen 32% from this recent low, following the general market recovery.

Despite this recovery, SHIB’s price remains below the 2-day, 50-day, and 200-day simple moving averages (SMA), indicating a bearish trend. Below the recent low, there’s a zone of market imbalance that needs to be addressed before a full price reversal can occur.

Currently, SHIB’s price is near the 21-day SMA, which has acted as a resistance level for the past 33 days. A break above this indicator could lead to further upward movement toward the 200-day and 50-day SMAs, which are closely aligned. Therefore, the price range of $0.0000168 to $0.0000195 is expected to be a significant resistance zone for SHIB. Surpassing this zone could propel the price to $0.0000336, with additional resistance at $0.0000236 and $0.00002998.

To fill the fair value gap (FVG) around $0.000011, SHIB’s price may need to drop by 30% from its current level. However, once this market imbalance is cleared, SHIB could begin an upward movement. A critical support level to monitor is $0.00001361.