The Price Action of Shiba Inu Points To An Enormous Rally Ahead.
For more than three months, the Shiba Inu price has been consolidating and is now sitting inside a highly bullish bottom reversal pattern. Since a result, investors should keep a close eye on SHIB, as it could explore at any time and spark a major surge.
For the 108th day, Shiba Inu pricing coils up inside an Adam and Even pattern with no evidence of a big volatility surge. If history is any indication, the 134-day consolidation experienced by Shiba Inu prices in the fourth quarter of 2021 led in a 1,185% increase in less than a month.
As a result, market participants who overlook the fact that this meme coin is consolidating within a bottom reversal pattern will be left on the sidelines. This technical formation has two unique valleys: the V-shaped one is called “Adam,” and the rounded bottom formation is called “Eve.”
The Eve is still missing a component and will be retested at $0.0000327. Theoretical calculations predict a 37% increase to $0.0000451, calculated by multiplying the depth of Adam by the breakout point of $0.0000327.
The Robinhood-listing rise appears to have been reversed by 70%, and the Shiba Inu price is now sitting around $0.0000243. A return of buying pressure that flips the $0.0000327 hurdle will herald a breakout from the Adam and Even pattern.
Investors should expect the bulls’ next stop to be at $0.0000451, which is the predicted goal, in this situation. Beyond this point, there’s a good probability SHIB will hit the psychological level of $0.00005.
This move would represent a 105% increase from where it is now, and it is likely that the Shiba Inu price will create a base before reevaluating its directional bias based on market conditions.
While the technicals are undoubtedly optimistic, the 30-day Market Value to Realized Value (MVRV) model adds to this belief. This metric is intended to calculate the average profit/loss of market participants who bought SHIB tokens in the previous month.
Based on Santiment’s backtest, a value below -10% indicates that short-term holders are at loss and is typically where long-term holders accumulate. Therefore, a value below -10% is knowns as an “opportunity zone,” since the risk of a sell-off is less.
The indicator is currently hanging around -6%, up from -11% on April 11, indicating that buildup is underway. Furthermore, historical data over the last three months suggests that local tops develop at roughly 15%, indicating that the SHIB price has further opportunity to rise north. This result is consistent with the technical viewpoints given.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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