- Shiba Inu’s price is trading around the highest level, also known as the Point of Control (POC), at $ 0.0000118.
- This level is a decisive point that will affect the investor positions.
- A weekly close of the candle below $ 0.0000083 will invalidate SHIB’s bullish thesis.
The Shiba Inu price shows a double perspective where it could go either way depending on the overall bias of the market. However, as many altcoins perform relatively worse than a group of altcoins, SHIB may see a different perspective.
Shiba Inu price with the duality it presents
Shiba Inu’s price fell 76% between April and June 2022. This drop took it from a high of $ 0.0000300 to a low of $ 0.0000071. Since that local low, SHIB has risen by a staggering 68%.
The volume profile extending from the peak of the aforementioned collapse to August 4th shows that the highest volume was trading at $ 0.0000118. An interesting observation here is that the rally has pushed Shiba Inu’s price above this level, which now serves as a support level.
The dual nature of the trade is clearer from this point of view and shows that as long as the support level of $ 0.0000118 is held, the chances of a bullish move are high. A breakdown, on the other hand, would indicate a possibility of correction.
A shift to both sides makes sense, especially given the lack of high-volume knots. From a bullish perspective, there is no major resistance level up to $ 0.0000198. Above this level, a weekly resistance level at $ 0.0000211 could prevent an upward move.
On the downside, there is price inefficiency at $ 0.0000083 that could potentially hurt early investors hoping to take advantage of the bullish move.
Due to this ambiguity, the best result can be obtained by looking at the price of Bitcoin, which is the engine and provider of directional bias in the crypto ecosystem, at least most of the time.
From a trader’s point of view, a filling of the FVG as soon as possible would be the signal that would trigger a buying opportunity for the Shiba Inu price, especially if the overall market picture looks bullish.
In that case, a long swing position at $ 0.0000083 with a target of $ 0.0000198 and $ 0.0000211 would be the best asymmetric risk / reward trade a trader can hope for. This movement, if it occurs, would represent a 154% gain.
1-day SHIB / USDT chart
While things could improve for Shiba Inu’s price due to its position above the POC at $ 0.0000118, the winds could shift, quickly favoring bears if Bitcoin’s price triggers a sell-off. Therefore, investors should be aware of the large cryptocurrency and its directional bias.
A weekly close of the candle below $ 0.0000083 will invalidate the bullish thesis for the Shiba Inu price and could trigger a collapse to the June 18th low of $ 0.0000071.