This simple setup for Shiba Inu will yield 75% returns

Shiba Inu price action reveals an Adam and Eve pattern in play, hinting at a breakout soon.
Investors can take advantage of the 75% rally to $0.0000454.
A daily candlestick close below $0.0000212 will invalidate the bullish thesis for SHIB.

Shiba Inu price set up a bottom reversal pattern on the daily chart, signaling a massive up move. However, the recent downtick in Bitcoin’s price has caused rallying altcoins to take a break.

Shiba Inu price sets a launchpad

Shiba Inu price action from January 5 to February 8 set up a V-shaped valley known as “Adam.” This move was followed by a rounded bottom formation referred to as “Eve”. While the second half of the pattern is still in play, investors can expect the setup to continue to completion.

The Adam and Eve formation is a bottom reversal pattern and forecasts a 38% upswing, determined by measuring the depth of the valley and adding it to the breakout point at $0.0000329.

Based on the theoretical forecasting methods, SHIB is likely to revisit the $0.0000329. From the current position, this move would constitute a 75% ascent. Shiba Inu price will also face a temporary hurdle at $0.0000399, where bulls need to band together to overcome it and reach the target.

SHIB/USDT 4-hour chart

Regardless of the bullish outlook for Shiba Inu price, Bitcoin can easily turn the setup into a stalemate if it heads south without a warning. So, investors need to exercise caution.

A daily candlestick close below $0.0000212 will invalidate the bullish thesis for Shiba Inu price. This development will create a lower low and shift the odds in the bears’ favor and potentially trigger a 55% crash to $0.0000094.

Share: Cryptos feed

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.