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