Market

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

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.