On December 20, 2021, and January 5, 2022, the SHIB retested the $ 0.0000283 support level, forming a double bottom. SHIB immediately broke through the support and triggered sales stops as a result of this pattern.
Sideline investors took advantage of the opportunity to stock up on SHIB at a discount, triggering a modest upswing that sent the meme currency above $ 0.000283. To launch a 20% rally to $ 0.0000341, or the 50 percent Fib retracement level, the SHIB must remain above this level going ahead.
Despite the uncertainties, the Shiba Inu price might continue to rise to the top of the range at $ 0.0000399, more than doubling the entire return from 20% to 40%.
The Market Value to Realized Value methodology backs up the positive prognosis. This on-chain indicator is used to calculate the average profit/loss of SHIB investors in the previous month.
The 30-day MVRV in the opportunity zone is now hovering at -14.8 percent, implying that the vast majority of short-term investors are losing money. Long-term investors like to gather around these levels, where the chance of a sell-off is lower. As a result, investors should expect substantial buying pressure on SHIB around the present level.
However, IntoTheBlock’s Global In / Out of the Money (GIOM) pattern reveals a significant resistance region between $ 0.0000290 – $ 0.0000340 that might halt SHIB’s ascent. A total of 96,443 billion SHIB tokens were purchased by around 170,000 addresses. You can sell at break-even to protect yourself against a SHIB rally.
It signals poor purchasing pressure if the Shiba Inu price cannot stay above the demand zone of $ 0.0000269 to $ 0.0000293.
The bullish thesis will be invalidated if the four-hour candlestick closes below $ 0.0000269, resulting in a lower bottom. When this happens, investors can expect the SHIB to decline 12% and retest the $ 0.0000237 support.