- Shiba Inu price edges close to triggering a rally after elaborate consolidation inside a Po3 setup.
- A successful breakout could send SHIB up from 20% to 27% to tag the $0.00000964 and $0.0000101 levels, respectively.
- A daily candlestick close below the $0.00000684 support level will invalidate the bullish thesis for the dog-themed cryptocurrency.
Shiba Inu price has set up a Power of 3 setup, which forecasts massive gains for the altcoin. The predicted rally, however, is contingent that SHIB can flip a critical resistance level into a support floor.
Also read: Shiba Inu introduces ‘Shibacals’ to link nfts to real-world items – SHIB jumps
Shiba Inu price edges closer to catalyzing a swift rally
Shiba Inu price has shown incredible resilience to bears over the past few days. The result of which is a 25% ascent in the last nine days. Considering the price action of SHIB between May 8 and June 24 reveals the foundation of a Power of Three (Po3) setup.
This technical formation contains three distinctive phases:
- The asset needs to consolidate above a significant support level, which in SHIB’s case is the $0.00000791, This is the accumulation phase.
- Following this stage, the asset drops lower to collect liquidity below a key swing low and take out early bulls, which is a clear sign of manipulation. Hence, this is the manipulation phase.
- The last stage involves a recovery above the recently broken critical support level, which will confirm the start of the next phase - Distribution.
The last phase is the most volatile one and often results in massive moves.
Currently, Shiba Inu price is edging closer to recovering above the $0.00000791 hurdle and flipping it into a stable support level. Doing so will confirm the breakout from the Po3 setup and kick-start a distribution phase for SHIB.
The ideal take-profit levels for Shiba Inu price include $0.00000964 and $0.0000101, which are roughly 20% and 27% away from the current position at $0.00000797.
SHIB/USDT 12-hour chart
While the Po3 setup for Shiba Inu price hints at a minimum of 20% gain for SHIB holders, a failure to break above the $0.00000791 will signal a weak buyers’ camp. Furthermore, a breakdown of the $0.00000684 support level will invalidate the bullish thesis for the dog-themed cryptocurrency.
In such a case, Shiba Inu price could slide 6.30% and retest the June 14 swing low at $0.00000641.
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