SHIB kick-starts its 80% upswing journey; should traders take profit now
At the time of this analysis, Shiba Inu’s price was showing massive strength amid market-wide weakness. It could likely trigger a massive run-up if certain hurdles are flipped. Adding credence to this outlook are the on-chain metrics that indicate a higher probability of gains in the coming weeks.
Shiba Inu’s price set up a bottom reversal pattern, known as Adam and Eve, by forming two distinctive valleys after 4 January.
The V-shaped valley is known as ‘Adam’ and the rounded bottom formation is referred to as ‘Eve.’ As seen in the chart, the Eve will be complete if SHIB retests the $0.0000327 hurdle.
The formation forecasts a 3% upswing to $0.0000451, determined by measuring the valley’s depth and adding it to the breakout point at $0.0000327.
Due to the recent announcement of SHIB listing on Robinhood, the price of Shiba Inu has recovered from the recent crash and is hovering around $0.00002899.
If SHIB flips the $0.0000327 hurdle, it will signal a breakout from the Adam and Eve pattern. In such a case, investors can rest assured that the next stop for the bulls will be the target at $0.0000451.
This run-up would constitute a 37% upswing from the breakout point. However, it would amount to 80% gains from the current position. Therefore, accumulating in the current market structure could provide investors with a higher return on their investments.
Source: TradingView, SHIB/USDT 1-day chart
Supporting this outlook for Shiba Inu’s price is the 30-day Market Value to Realized Value (MVRV) model. As mentioned in our previous articles, this indicator can be used to assess the average profit/loss of investors who purchased SHIB tokens over the past month.
A value below -10% indicates that short-term holders are selling at a loss and
Read more on ambcrypto.com
