(Akash Girimath – FXStreet)
– Shiba Inu price shows a tiring consolidation around the POC at $0.0000118.
– A breakdown of this level to fill the price in efficiency present at $0.0000083 seems plausible in the near future.
– If SHIB produces a daily candlestick close below the $0.0000074 support level, it will invalidate the bullish thesis.
Shiba Inu price has been hovering around a significant barrier for roughly three months with virtually no momentum to move above it. This development might be primed for a strong move but the directional bias remains unknown.
Shiba Inu price continues to consolidate
Shiba Inu price has been consolidating around the volume point of control (POC) at $0.0000118 for roughly three months. This barrier is the highest traded level since April 12, 2022, and hence will act as a support or resistance level relative to where the price is trading.
Shiba Inu price rallied 68% in three days after forming a bottom at $0.0000071 on June 18. This move to the upside left a massive inefficiency or void extending from $0.0000083 to $0.0000092, known as the fair value gap (FVG).
These gaps are often filled as the massive rally returns to the mean. For SHIB, this has not happened yet and, therefore, presents a bullish opportunity for investors. Investors can wait for Shiba Inu price to fill the FVG and open a swing long position here.
The targets for this trade could be the POC at $0.0000118, followed by $0.0000199 and $0.0000211. In total, this move would constitute a 150% upswing.
While things are looking up for Shiba Inu price, a premature rally above the POC will suggest that this move is temporary and could reverse. However, if SHIB produces a daily candlestick close below $0.0000074, it will create a lower low and present the risk of a further crash.