At the moment, Shiba Inu has cleared out a strong support zone (created on Monday 20th September 2021). SHIB has been ranging this zone in recent weeks, however, a change of character (ChOCh) looks possible as we await the formation of the new weekly candle.
Over 90% of Shiba Inu holders are currently in a net-loss position, according to IntoTheBlock’s In/Out of the Money Around Price distribution statistics. In the upcoming weeks, SHIB is most likely to have another upturn towards $0.000008 due to the counter-trend.
In view of the analysis below, SHIB will target the nearest daily Fair Value Gap (FVG) and which lies above the current position. This confirms that SHIB is warming up for an uptrend.
Meanwhile, Swing investors can keep still until SHIB makes a reaction with the trend line before deciding on a long entry position, while Intraday traders can utilize the advantage by going long.
Let’s take a little dive to explain some concepts highlighted here:
- Change of Character (ChOCh): This is where the price of the internal structure (Support or Resistant Zone) begins to head in the opposite direction.
- Support Zone: This is an area or region in charts where prices begin to buy. Hence, it is a zone that initiates a buying strength for a bullish market.
- Fair Value Gap: This is sometimes called an imbalance. A fair value gap exists when the price of the currency is higher than its fair value of it, but the price of the currency could decline quickly.
- Internal Range Liquidity: The liquidity inside the defined range (External Range Liquidity), This could be in the form of any institutional reference that we can use as an entry such as order blocks, fair value gaps, volume imbalance, and more.
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