- Shiba Inu price has collected liquidity resting below $0.0000283, signaling a new uptrend’s start.
- A swift recovery above $0.0000283 will likely restart a 20% ascent to $0.0000341.
- A breakdown of the daily demand zone, ranging from $0.0000269 to $0.0000293, will invalidate the bullish thesis.
Shiba Inu price has fumbled around a stable support level, flipping it into a resistance level multiple times. However, this development was a necessary evil required to collect the liquidity resting below it. Therefore, the recent downswing could be the key to kick-starting a new uptrend.
Shiba Inu price to pull a 180
Shiba Inu price tagged the $0.0000283 support level on December 20, 2021, and January 5, creating a double bottom setup. Soon after this pattern, SHIB sliced through this support level, collecting the sell-stop liquidity resting below it.
The sidelined buyers took this opportunity to accumulate Shiba Inu price at a discount, triggering a minor uptrend that allowed the meme coin to recover above $0.0000283. Going forward, SHIB needs to stay above this trend line to kick-start a 20% advance to $0.0000341 or the 50% retracement level and the buy-stop liquidity resting above it.
Although unlikely, Shiba Inu price could continue this rally and make a run for the double top formed around the range high at $0.0000399, doubling the total gain from 20% to 40%.
SHIB/USDT 4-hour chart
Supporting the bullish outlook up to $0.0000340 is IntoTheBlock’s Global In/Out of the Money (GIOM) model. This on-chain index shows that the only resistance area that could prevent an uptrend for SHIB extends from $0.0000290 to $0.0000340. Here, roughly 170,000 addresses that purchased 96,443 billion SHIB tokens are “Out of the Money” and are likely to sell at break-even, resisting any advances for the meme coin.
Further indicating a bullish outlook 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, the 30-day MVRV is hovering inside the opportunity zone at -14.8%, indicating that a majority of the short-term holders are at a loss. Long-term holders often accumulate around these levels, where the risk of a sell-off is less.
Therefore, investors can expect SHIB to see considerable buying pressure around the current levels.
SHIB 365-day MVRV
Regardless of the bullish outlook and the on-chain metrics, if Shiba Inu price fails to stay above the demand zone, extending from $0.0000269 to $0.0000293, it will indicate a weakness in buying pressure.
A four-hour candlestick close below $0.0000269 will create a lower low, invalidating the bullish thesis. In this case, investors can expect Shiba Inu price to crash 12%, retesting the $0.0000237 support level.
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