Shiba Inu token has been grabbing momentum as of late. On the 1W and 1D charts, a distinct W is beginning to form with us being a little above the second trough at the time of this idea. I drew a crude Fibonacci retracement -- it is crude because I am not 100% that I am using the retracement tool accurately BUT there are three fibonacci retracement levels that show strong correlation to prior resistances and supports -- 78.6%, 50%, and 23.6%.
If Shiba Inu's price can break through the resistance presented at 23.6% then the next major resistance appears to be at the 50% Fibonacci level, then the 78.6%, and then finally arriving at a bountiful price target around $0.00001587. According to the chart's timeline, this could take up to three months to complete at its current pace which presents two possibilities:
Traders should remain cognizant of macroeconomic news and Bitcoin ETF updates as they can render a trading pattern invalid at any moment. However, should everything remain status quo and the market outlook remain positive, it is my personal opinion that this trade can benefit both short and medium term holders.
Traders should practice good habits by increasing Stop-Losses with market gains and watching the volume to avoid entering or exiting a trade too soon.
SHIBUSD
If Shiba Inu's price can break through the resistance presented at 23.6% then the next major resistance appears to be at the 50% Fibonacci level, then the 78.6%, and then finally arriving at a bountiful price target around $0.00001587. According to the chart's timeline, this could take up to three months to complete at its current pace which presents two possibilities:
- Bitcoin ETF gets rejected and the crypto market experiences a news-propelled crash. Corrections will be inevitable in any market but, in my opinion, the Bitcoin ETF getting rejected could send us back to prior lows or at least close to it.
- Bitcoin ETF gets approved and the prior price target of $0.000015 may arrive sooner as well as be too conservative.
Traders should remain cognizant of macroeconomic news and Bitcoin ETF updates as they can render a trading pattern invalid at any moment. However, should everything remain status quo and the market outlook remain positive, it is my personal opinion that this trade can benefit both short and medium term holders.
Traders should practice good habits by increasing Stop-Losses with market gains and watching the volume to avoid entering or exiting a trade too soon.
SHIBUSD
Comment:
Double bottom pattern is remaining steadfast. Indicators support trajectory: positive increase in volume and rising slope for on-balance volume (OBV).
Trade active:
The value of SHIB has declined further than I originally anticipated, however, I am not too concerned. After reviewing the 1D chart I believe the token is still on track for a Three Hills and a Mountain pattern. The supporting indicators are as follows:
- Dwindling volume with decreasing value (suggests the current trend is temporary)
- Money Flow Index (MFI) is approaching oversold territory
- Dwindling volume with decreasing value (suggests the current trend is temporary)
- Money Flow Index (MFI) is approaching oversold territory
Trade closed: target reached:
Target has been reached! I will close this idea out and publish a new one with new price projections.
