Jonathan Morgan
Independent Analyst
- Shiba Inu price continues to display a massively bullish trade reversal opportunity ahead.
- Bulls are likely salivating while anticipating a repeat of October’s price action.
- The anticipated profit target is just shy of the current all-time high.
Shiba Inu price has been consolidating since the December 5 flash-crash. Support is holding just above the 88.6% Fibonacci retracement at $0.00003200.
Shiba Inu price buying opportunity could see a greater than 100% gain
Shiba Inu price action has been a source of frustration for many hodlers and bulls who remain on the sidelines. But changes are developing. The Relative Strength Index on the daily chart has moved above the last oversold level in a bull market (40). Additionally, the Composite Index has crossed above both of its moving averages.
One of the most sought-after reversal patterns in Point and Figure Analysis is the Shakeout Pattern. Unfortunately, this pattern doesn’t show up often, and it is only valid if an instrument is already in a broader uptrend. The Bullish Fakeout Pattern forms after a long column of Os drops below a multiple bottom by at least two, but no more than three, Os.
SHIBA/USDT $0.0000025/3-box Reversal Point and Figure Chart
The hypothetical long setup for Shiba Inu price is a buy stop at the 3-box reversal ($0.00003750), the stop loss is a 4-box stop (currently at $0.0000270), and a profit target at $0.00007750. The profit target is derived from the Vertical Profit Target Method in Point and Figure Analysis. A trailing stop of two to three boxes would help protect any implied profits post entry.
There is no invalidation entry for Shiba Inu with this hypothetical long setup. If Shiba Inu continues to print more Os in the current column, the buy stop and stop loss shift lower in tandem with Shiba Inu’s drop.
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