• Shiba Inu price bounces off the daily demand zone, extending from $0.0000269 to $0.0000293.
  • Increased buying pressure could propel SHIB by 31% to sweep the range high at $0.0000399.
  • A four-hour candlestick close below $0.0000269 will create a lower low, invalidating the bullish thesis.

Shiba Inu price is at an interesting point in its journey since it has produced two areas of liquidity in the opposite direction. Adding to this exciting development is one hurdle that blocks the path for SHIB and might hinder the bullish outlook.

Shiba Inu price prepares for a rally

Shiba Inu price set up two swing lows at $0.0000283 on December 20, 2021, and January 5, creating the double bottom setup. Interestingly, this setup took place inside the daily demand zone, extending from $0.0000269 to $0.0000293.

While SHIB has recovered above this area, it needs to rally 12% before it faces the trading range’s midpoint at $0.0000341. Clearing this barrier will lead the meme coin to face $0.0000349, which harbors the buy-stop liquidity resting above it. 

Shiba Inu price needs to clear $0.0000349 before it can reach the range high at $0.0000399, completing its 31% ascent.

SHIB/USDT 4-hour chart

SHIB/USDT 4-hour chart

Depicting the importance of the hurdle at  $0.0000349 is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain metric shows that roughly 110,570 addresses that purchased 82,785 billion SHIB tokens at an average price of $0.0000350 are underwater.

Therefore, Shiba Inu price needs to flip this barrier to reduce the selling pressure from holders trying to break even.

Beyond this area, the resistance barriers thin out until $0.0000680, supporting the bullish outlook detailed above.

SHIB GIOM

SHIB GIOM

Further indicating the oversold nature of Shiba Inu price is the Market Value to Realized Value (MVRV) model. This on-chain metric is used to determine the average profit/loss of investors that purchased SHIB over the past month.

Currently, 30-day MVRV is hovering at -11.53%, an opportunity zone, suggesting that SHIB holders are at a loss and are less likely to sell their tokens. Moreover, long-term holders tend to accumulate in this area, which could serve as a significant source of buying pressure and could be the reason to kick-start an uptrend.

SHIB MVRV

SHIB MVRV

While things are looking up for Shiba Inu price, a four-hour candlestick close below the daily demand zone’s lower limit at $0.0000269 will create a lower low, invalidating the bullish thesis. This development could trigger a crash, knocking Shiba Inu price to retest the $0.0000237 support level.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP bulls in spotlight as SEC v. Ripple court filing hints at early closure

XRP bulls in spotlight as SEC v. Ripple court filing hints at early closure

XRP price could make or break based on the outcome of Ripple Labs case with the US Securities and Exchange Commission (SEC). In the latest twist and turn in the courtroom drama, Ripple (XRP), which is a cross-border payment settlement firm.

More Ripple News

Bitcoin struggles to fly despite clear skies up to $19,280

Bitcoin struggles to fly despite clear skies up to $19,280

Bitcoin price is struggling to overcome a small hurdle after a fresh start to the week. A closer look reveals that BTC could easily trigger a rally but is unable to do so despite a lack of resistance to the upside.

More Bitcoin News

AVAX's traders bet should be on Avalanche bulls triggering a 15% rally

AVAX's traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. However, bulls face another blockade that needs to be overcome to trigger an extended rally.

More Avalanche News

Ethereum bulls come to the rescue with a plan to revisit $1,500

Ethereum bulls come to the rescue with a plan to revisit $1,500

Ethereum price set up a local top after a quick run-up over the last week. This move was followed by a tight consolidation that resulted in a breakdown, allowing sidelined buyers to step up. As a result, ETH is primed for a quick run-up.  

More Ethereum news

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

Bitcoin Weekly Forecast: Assessing likelihood of 80% rally for BTC before 2023

A massive bullish move is coming. In the last two articles, we have taken a look at why this is possible from a technical and on-chain perspective. In this weekly forecast, we will take a look at Bitcoin’s monthly performance for the last decade and determine if this bullish outlook is possible. 

Read full analysis

BTC

ETH

XRP