SHIB price has fumbled around a stable support level, flipping it into a resistance multiple times. However, this development was a necessary evil required to collect the liquidity resting below it. Therefore, the recent price downswing could be the key to kick-starting a new uptrend.

Shiba Inu price to pull a 180

Shiba Inu tagged the price of $0.0000283 level on December 20, 2021, and January 5, creating a double bottom setup. Soon after this pattern, SHIB price sliced through this support level, collecting the sell-stop liquidity resting below it.

The sidelined buyers took this opportunity to accumulate Shiba price at a discount, triggering a minor uptrend that allowed the shib coin to recover above $0.0000283. Going forward, SHIB price needs to stay above this trend line to kick-start a 20% advance to price of $0.0000341 or the 50% retracement level and the buy-stop liquidity resting above it.

Although unlikely, Shiba price could continue this rally and make a run for the double top formed around the range high at price of $0.0000399, doubling the total gain from 20% to 40%.

Supporting the bullish price outlook up to $0.0000340 is IntoTheBlock’s Global In/Out of the Money model. This on-chain index shows that the only resistance level area that could prevent an uptrend for SHIB extends from price of $0.0000290 to $0.0000340. Here, roughly 170,000 addresses that purchased 96,443 billion Shiba Inu tokens are “Out of the Money” and are likely to sell at break-even, resisting any advances for the shib coin.

Further indicating a bullish price outlook is the Market Value to Realized Value model.

This on-chain price metric is used to determine the average profit/loss of investors that purchased Shiba Inu over the past month.

Currently, the 30-day MVRV is hovering inside the opportunity level zone at -14.8%, indicating that a majority of the short-term holders are at a loss. Long-term SHIB holders often accumulate around these levels, where the risk of a sell-off is less.

Therefore, investors can expect SHIB price to see considerable buying pressure around the current levels.

Regardless of the bullish price outlook and the on-chain metrics, if Shiba Inu tokens price fails to stay above the demand zone, extending from price of $0.0000269 to $0.0000293, it will indicate a weakness in buying pressure.

A four-hour candlestick pattern close below $0.0000269 will create a lower low, invalidating the bullish price thesis. In this case, investors can expect Shiba Inu price to crash 12%, retesting the price of $0.0000237 support level.

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Shiba Inu price defends the $0.0000300 value area