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Shiba Inu [SHIB] – The case in favour of a 24% upswing

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Shiba Inu’s price has completed a bottom reversal pattern over the course of three months and five days. With the recent uptick in buying pressure, the breakout seems to be confirmed, hinting at a final call for interested investors, before triggering a massive and exponential run-up.

Shiba Inu bulls make a comeback

Between 21 February and 29 March, SHIB created two distinctive valleys, with the first one having a V-shaped recovery and the second one with a rounded bottom. The former is known as Adam and the latter Eve. 

This technical formation forecasts a 24% upswing, determined by adding the distance between the peak and the valley to the breakout point at $0.0000273. As of 29 March, SHIB had pierced the $0.0000273 hurdle and produced a six-hour candlestick close above it to confirm a decisive breakout.

Therefore, market participants can expect bulls to trigger a 24% rally to $0.0000339. While bullish, this uptrend might face minor resistance at $0.0000325, above which rests buy-stop liquidity. So, market makers are likely to push SHIB’s price above this hurdle and allow for a chance to retrace before sending SHIB to its target at $0.0000339.

This run-up would constitute a 24% upswing and is likely where SHIB will form a local top and consolidate before firmly establishing a new directional bias.

Source: SHIB/USDT on TradingView

Supporting this bullish outlook for Shiba Inu’s price is the 30-day Market Value to Realized Value (MVRV) model. This indicator is used to assess the average profit/loss of investors who purchased SHIB tokens over the past year.

A negative value below -10% indicates that short-term holders are at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone.”

Although the 30-day MVRV for SHIB has moved past the zero-line and is currently hovering around 11%, there is a chance for the altcoin to move higher. The uptrend in February saw the MVRV form a local top at 30. Similar, spikes to 30% were seen in July and August 2021. So, if history repeats itself, investors can expect SHIB to continue its ascent to the target at $0.0000339.

Source: Santiment

While things are looking up for Shiba Inu’s price, a breakdown of the $0.0000259 support level will create a lower low and invalidate the bullish thesis.

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Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
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