Shiba Inu (SHIB) can be increased by 20% from the current level

Shiba Inu (SHIB) has held an important area of ​​support and could see a recovery in the next few days.

Potential increase of 20-40%

The SHIB retested the support of $ 0.0000283 on December 20, 2021 and January 5, creating a double bottom. Immediately following this pattern, SHIB broke through the support and triggered sales stops.

Sideline buyers took this opportunity to accumulate SHIB at a discount, sparking a small uptrend that allowed the meme coin to rebound above $ 0.000283. Going forward, the SHIB must hold above this level to initiate a 20% rally to $ 0.0000341 or the 50% Fib retracement level.

Despite the uncertainty, Shiba Inu price could continue to rally to the top of the range at $ 0.0000399, doubling overall profit from 20% to 40%.

Shiba Inu/ USDT 4-hour chart | Source: TradingView

The bullish outlook is supported by the Market Value to Realized Value (MVRV) model.

This on-chain metric is used to determine the average profit / loss of investors who bought SHIB in the past month.

Currently, the 30-day MVRV in the opportunity zone is hovering at -14.8%, suggesting the majority of short-term owners are losing money. Long-term owners often accumulate around these levels where there is less risk of a sell-off.

Hence, investors can expect SHIB to see strong buying pressure around the current level.

However, IntoTheBlock’s Global In / Out of the Money (GIOM) pattern shows a strong resistance area that can stop SHIB’s uptrend at $ 0.0000290 – $ 0.0000340. Around 170,000 addresses bought 96,443 billion SHIB tokens here. You can sell break-even and hedge against any SHIB rally.

If Shiba Inu price cannot hold above the demand zone of $ 0.0000269 to $ 0.0000293, it indicates weak buying pressure.

A four-hour candlestick close below $ 0.0000269 will create a lower low, invalidating the bullish thesis. When this happens, investors can expect the SHIB to decline 12% and retest the $ 0.0000237 support.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page