Shiba Inu price primed for 50% breakout to kick start new bull run
- Shiba Inu price maintains a tight trading range after a 15% spike on January 12.
- Primary resistance at $0.000033 must be broken to begin a new bull run.
- Downside risks exist but are limited compared to upside potential.
Shiba Inu price action has stabilized somewhat since the 35% loss experienced from December 28, 2021, to January 10, 2022. However, it has held on to most of its gains and maintained a critical Ichimoku support zone.
Shiba Inu price needs to regain $0.000033 before it can start a new leg higher
Shiba Inu price has two critical technical levels that it must break to change the current bearish outlook to a bullish one. The daily Kijun-Sen and the Volume Point Of Control share the $0.000032 value area. If bulls can push SHIBA to a close above that, a new trend may begin.
A hypothetical trade setup now exists on the daily chart for Shiba Inu price. However, the caveat with the entry is that the daily close must be at or slightly above the entry level. Therefore, the hypothetical trade setup is a buy stop order at $0.000033, a stop loss at $0.000029 (slightly below the Tenkan-Sen), and a profit target at $0.000049.
The trade represents a 4:1 reward/risk setup with an implied profit target of slightly over 50% from the entry. A trailing stop would help protect any profit made post entry.
SHIBA/USDT Daily Ichimoku Kinko Hyo Chart
The trade is invalidated if Shiba Inu price moves to a close below the January 10 close or if it moves to a new low below the January 10 low. Shiba Inu would likely move to the $0.000020 value area in that scenario.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
