• 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

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.

SHIB GIOM 

SHIB GIOM 

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

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.

 


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.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP