Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- SHIB was an outlier, firmly bullish in an overall market slump.
- SHIB consolidates gains near the June high of $0.00000874.
Despite the overall market slump, Shiba Inu [SHIB] has maintained a bullish outlook. The memecoin’s recovery from mid-June has offered +55% gains as SHIB bounced from <$0.00000550 to June high near $0.00000874.
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The attempt to reclaim the June high tipped SHIB to foray into a previous May price range of $0.00000846 – $0.00000903. However, the memecoin hasn’t firmly held on the range-low in the past few days and could offer buying opportunities at these levels if the trend continues.
Is a retest on the range-low likely?
Source: SHIB/USDT on TradingView
The recent recovery’s primary roadblock was the December low, which aligned with the bullish order block (OB) of $0.00000785 – $0.00000824 (cyan). But the bullish price action flipped the block to a bullish breaker and retested it as support.
The next obstacle is June’s overhead resistance and the bearish OB of $0.00000878 – $0.00000918 (red). So far, price action has retested the level as resistance once, prompting SHIB to breach the previous range-low.
Below the previous range-low, $0.00000846, is a confluence area of the three price levels. It comprises a bullish breaker ($0.00000785 – $0.00000824, cyan), a price imbalance/Fair Value Gap (FVG) ($0.00000785 – $0.00000813, white), and trendline support (orange).
The above confluence area has been a solid bullish zone in the last few days, offering bulls stealth re-entry for long positions. If the trend continues, there are two possible long trade ideas.
The first idea is going long upon a retest of the previous range-low ($0.00000846), targeting $0.00000878. Secondly, going long upon a retest of the above bullish zone ($0.00000785 – $0.00000824), targeting the recent high of $0.00000878.
A breach below the trendline support and FVG will invalidate the bullish ideas. So, the exit target will be the December low of $0.00000800 or lower based on the trader’s risk averseness.
Bullish bias prevailed
Source: Cryptometer
A look at SHIB metrics on CryptoMeter reinforced a bullish inclination. For example, the readings at the time of writing indicated that buy volume was dominant at >54% as market buy orders increased within the last 24 hours.
How much are 1,10,100 SHIBs worth today?
A similar bullish sentiment prevailed in the futures market. According to Coinglass, SHIB’s volume surged by over 99% while Open Interest rates increased by >25% in the last 24 hours. It shows shorting the asset was risky.
So, waiting for a retest of the previous range-low or the confluence area for long-entry positions could be more reasonable.
