US Politician Cheers Shiba Inu Price Surge, But Trend Reversal Still Pending

Shiba Inu SHIB

Shannon Bray, a gubernatorial candidate in North Carolina next year, has again expressed his love for the meme coin Shiba Inu (SHIB). On Sunday, Bray shared his delight over SHIB’s price increase last week (+8.3%). Bray encouraged the SHIB army to keep up the positive momentum and called for further action.

He also urged SHIB enthusiasts to tweet about Shiba Inu throughout the day to generate ongoing excitement. Via Twitter, he wrote:

Ok #shibarmy, let’s continue the lil pump from today. Tweet $shib and #SHIB all day! Build some excitement. After all, thank goodness we aren’t PEPE. They’ll never be on Robinhood.

Today Bray followed up with a partial apology to PEPE holders: “Sorry $pepe holders. Didn’t mean any offence.” However, he justified his statement and explained that he does not expect Robinhood to host any other community token in the near future.

“Therefore #shib has a huge advantage on market recovery. $shib is on just about every exchange. I’m hoping y’all [PEPE] pump as well,” the North Carolina gubernatorial candidate wrote.

Related Reading: Shiba Inu (SHIB) Burn Rate Suffers 87% Decline In Single Week

Bray already caused a stir last week when he announced via Twitter that he will buy Shiba Inu (SHIB) with his next paycheck. According to Bray, “nothing else will ever regain the traction” that Shiba Inu has accumulated. Furthermore, Bray believes that people who have left the SHIB community will return because of Robinhood’s presence.

Trend Reversal For Shiba Inu Price Remains Pending

Despite all the excitement about SHIB’s recent rally, it should be pointed out that the price is still in a bearish trend. A look at the 1-day chart shows that SHIB has been stuck in a descending trend channel since the local high of $0.00001588 on February 4 this year.

Over the past more than four months, Shiba Inu has failed to write higher highs while the price has written lower lows. SHIB is thus stuck in a descending trend channel. At the current price of $0.00000715, SHIB is trading in the mid-range of the trend channel. For now, it is important to break this level to start a push to the upper end.

The following two scenarios are conceivable: If the Shiba Inu bulls manage to break through the mid-range, the 23.6% Fibonacci retracement level at $0.00000834 comes into focus. It is likely that SHIB will first experience a retracement before the price level can be penetrated.

The Fibonacci retracement level may then also meet the upper end of the trend channel. This point in time would be crucial to initiate an uptrend. Then, all eyes would be on a new local high above $0.00000930.

In a second scenario, SHIB fails to break above the mid-range of the descending trend channel. In this case, SHIB could sweep the low at $0.000006 again. If the price also breaks below this level, Shiba Inu investors should prepare for a downside price discovery.

SHIB price still stuck in downtrend, 1-day chart | Source: SHIBUSD on TradingView.com

Back to the bullish case: if SHIB manages to break out of the descending trend channel in the coming weeks, the following target prices would be of significance: $0.0000098 (38.2% Fibonacci), $0.00001095 (50% Fibonacci) and $0.00001212 (61.8% Fibonacci).

Featured image from iStock, chart from TradingView.com
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