On October 19th, the price of Shiba Inu (SHIB) stopped its decline and started to rise. Currently, SHIB has broken the downtrend and formed a local peak at $0.00000824 on October 26th.
SHIB Price Chart, Source: TradingView.
After forming this swing high, the uptrend lacked confirmation from the Relative Strength Index (RSI) and showed divergence, with RSI being above 50, which could result in a pullback or trend reversal. While that is indeed the case, even if a pullback occurs, it is likely to be minor rather than a sharp decline due to strong buying pressure.
SHIB/USDT 4-hour chart, Source: TradingView.
Considering the recent reversal of the downtrend, the probability of a bullish failure is low. Therefore, investors can expect the price of Shiba Inu to consolidate, allowing cautious buyers to enter and trigger the continuation of the uptrend. The price may rise from $0.00000871 to $0.0000102, resulting in an 11% profit for Shiba Inu price traders.
On the other hand, if there is a sharp correction in the price of Shiba Inu that leads to a daily candlestick closing below $0.00000752, the bullish argument would become invalidated. This would create lower lows and break key support levels. In such a scenario, SHIB could experience a 4.5% drop and establish the next support level at $0.00000709.
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