SHIB begins its growth journey at 80%; should traders take profits now
At the time of this analysis, Shiba Inu price was showing massive strength amidst market-wide weakness. This could probably trigger a massive boost if some obstacles are knocked down. On-chain metrics that point to a higher likelihood of gains in the coming weeks add credence to this outlook.
Shiba Inu Price Ignore Noise
Shiba Inu price established a bottom reversal pattern, known as Adam and Eve, by forming two distinct valleys after January 4th.
The V-shaped valley is known as “Adam” and the rounded bottom formation is called “Eve”. As the chart shows, the watch will be complete if SHIB retests the $0.0000327 hurdle.
The formation forecasts a 3% rise to $0.0000451, determined by measuring the depth of the valley and adding it to the breakout point at $0.0000327.
Due to the recent announcement of SHIB’s listing on Robinhood, Shiba Inu’s price has recovered from the recent crash and is hovering around $0.00002899.
If SHIB reverses the $0.0000327 hurdle, it will signal a breakout of 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 ramp-up would constitute a 37% upside from the breakout point. However, this would represent 80% gains from the current position. Therefore, accumulation in the current market structure could provide investors with a higher return on their investments.
The 30-day Market Value to Realized Value (MVRV) model supports this outlook for Shiba Inu price. As mentioned in our previous articles, this indicator can be used to gauge the average profit/loss of investors who have purchased SHIB tokens over the past month.
A value below -10% indicates that short-term holders are selling at a loss and this is usually where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as the “opportunity zone”, because the risk of selling is lower.
Currently, the index is hovering around the zero line after rallying -11% in less than 24 hours. This sudden rise indicates that many investors are in equilibrium.
However, reviewing historical data for the past several months indicates that local highs are forming at around 15%. Thus, suggesting that there is more upside for SHIB. Interestingly, this perspective coincides with the opinions expressed from a technical point of view.
Therefore, investors should keep a close eye on SHIB, as any short-term retracement could be a potential level to build up before a massive surge that could nearly double investments.