Is Shiba Inu price setting up an opportunity to recoup this year’s losses?
- Shiba Inu price coils in a consolidative manner that will likely resolve in a sharp rally.
- SHIB price trades above both the 8- and 21-day simple moving averages.
- Invalidation of the uptrend is a breach below $0.00000938.
Shiba Inu price presents a bullish trade setup with a conservative entry that equates to a 4-1 reward-to-risk ratio.
Shiba Inu price to the moon?
Shiba Inu price has been trading in a triangular fashion since the out-of-nowhere rally that occurred on the first day of summer 2021. The rally on June 21 pulled off a 68% increase in price, followed by the sideways profit-taking range the notorious dog coin finds itself entangled in.
Shiba Inu price experienced a brief rejection around $0.00001100 on July 5. Shortly after a steep retracement occurred and the bulls managed to hurdle over the 21-day simple moving average (SMA). SHIB price currently trades at $0.000001038, above both the 8- and 21-day SMAs, enabling analysts to believe that the triangular consolidation may soon resolve with an additional 70% bull rally in the coming days.
From a reward-to-risk perspective, being an early bull could provide a 5.75 to 1 setup targeting the $0.000001700 price level.
SHIB/USDT 4-Hour Chart
A more conservative approach will be to wait for a second attempt from the bulls to breach and definitively close above the newly established swing high at $0.00001100.
SHIB/USDT 4-Hour Chart
It is worth noting that both the early and the more conservative setup keeps an invalidation level below wave A of the triangle at $0.000001043. This conservative invalidation point is to avoid a smart money-induced liquidity hunt of the $0.00000950 swing low while maintaining the ability to participate in a sharp moving bull-run. Hearty risk-to-reward trade setups come every few months in the cryptocurrency market which could entice many traders to partake in the move to recoup losses from 2022’s bear market. Thus a breach of the $0.00001100 could trigger massive volatility.
Investors should keep in mind that, If the bears breach the $0.00000920, the uptrend thesis will not be entirely invalidated. However the breach would open the possibility of a sharper decline to $0.00000800, resulting in a 23% decrease from the current Shiba Inu price.