Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- SHIB has been an outlier, solidly bullish in a general market slump.
- SHIB consolidates gains near June high of $0.00000874.
Despite the general malaise in the market, Shiba Inu [SHIB] has maintained a bullish outlook. The memecoin’s recovery from mid-June has seen +55% gains as SHIB bounced from <$0.00000550 to June highs near $0.00000874.
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The attempt to regain the June high caused SHIB to fall into an earlier May price range of $0.00000846 – $0.00000903. However, the memecoin has not held firmly to the low range in recent days and could provide buying opportunities at these levels if the trend continues.
Is a retest on the range-low likely?
Source: SHIB/USDT on TradingView
The main hurdle to the recent recovery was the December low, which corresponded to 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 the June overhead resistance and the bearish OB of $0.00000878 – $0.00000918 (red). So far, price action has retested the level once as resistance, prompting SHIB to break the previous low range.
Below the previous low range, $0.00000846, is a confluence area of the three price levels. It consists of 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 for the past few days, allowing bulls to stealth re-entry for long positions. If the trend continues, there are two possible long trade ideas.
The first idea goes long on a retest of the previous range low ($0.00000846), targeting $0.00000878. Second, going long after a retest of the above bullish zone ($0.00000785 – $0.00000824), targeting the recent high of $0.00000878.
A break below the trendline support and FVG will invalidate the bullish ideas. Thus, the exit target will be the December low of $0.00000800 or lower based on the trader’s risk aversion.
Bullish prejudices prevailed
Source: cryptometer
A look at SHIB statistics at cryptometer reinforced a bullish tendency. For example, readings at the time of writing indicated that buy volume was dominant at >54% as buy orders in the market increased over the past 24 hours.
How many 1,10,100 SHIBs worth today?
A similar bullish sentiment prevailed in the futures market. According to Mint glass, SHIB volume rose more than 99%, while open interest rates rose >25% in the last 24 hours. It shows that shorting the asset was risky.
So waiting for a retest of the previous low range or confluence area for long entry positions could be more reasonable.