Shiba Inu presents 3 to 1 buy opportunity before SHIBA breaks out
|- Shiba Inu price develops a significant bullish reversal pattern.
- Participants have been consolidating in a tight range, fueling any breakout.
- The anticipated target is near the all-time high.
Shiba Inu price has been consolidating for the past ten days, establishing a support zone near the 88.6% Fibonacci retracement at $0.00003200. SHIBA is likely coiling for a giant price spike – the direction of the spike being higher if the broader market can catch a bid.
Shiba Inu price is positioning for a breakout that could see a 90% gain
Shiba Inu price has been stagnant for a while, frustrating many hodlers in the process. The Relative Strength Index on the daily chart has barely deviated from the final oversold level in a bull market (40). Likewise, the Composite Index has sat in a neutral condition ever since December 5. This consolidation could be the beginning of a significant price spike.
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.
The hypothetical long setup for Shiba Inu price is a buy stop at the 3-box reversal ($0.00004000), the stop loss is a 5-box stop, 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.
SHIBA/USDT $0.00005/3-box Reversal Point and Figure Chart
Shiba Inu price can only move one more O below to $0.00003000. If it prints another O below that, the trade is invalidated, and SHIBA would likely retest the $0.00002000 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.