Shiba Inu confirms a strong bearish signal and could make a new bottom in 2022
- Shiba Inu price action is mostly flat on the Caro chart.
- Surprisingly, SHIBA triggered a suspected long entry that was identified last week.
- The downside risk remains and could be extreme.
Shiba Inu price is at risk of making a new low in 2022 and dropping to $0.00001200
Shiba Inu is currently in a strong downtrend. On Monday, there was hope that SHIBA was positioned for an ideal bullish Ichimoku breakout. This bullish entry level for entering Ichimoku has dropped significantly since last week, but the bulls are unable or unwilling to capitalize on it.
Instead, the Shiba Inu was rejected by the Kijun-Sen and the top of the Ichimoku cloud in the $0.0002800 to $0.0002850 value zone. It was over on Friday confirm an ideal bearish Ichimoku break that sends SHIBA to its most bearish position since November 2021. SHIBA could quickly drop towards the 161.8% Fib extension at $0.00001200.
However, despite the bearish development on the Ichimoku chart, the SHIBA Caro chart remains flat since it triggered an earlier long entry. This entry remains in effect and remains a viable entry point before risk sentiment returns to this market.
The hypothetical long entry is a buy stop on the reversal of the 3 Xs formed from the previous O column. This entry was triggered at $0.00002800. The entry is still valid. The stop loss is $0.00001200 and the profit target is $0.0004540. A hypothetical trade setup with an RR (reward/risk) ratio of 4.33:1. A stop of two to three cells helps protect potential profits once the entry is triggered.
Caro chart SHIB/USD $0.000002/3 box reversal | Source: TradingView
The long trade idea will be voided if the Shiba Inu price falls to $0.000014 or below before the entry is triggered. However, if the SHIBA continues to fall, the entry and stop-loss move in parallel, but the profit target remains the same.
You can see the SHIB prices here.
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According to Fxstreet