Shiba Inu: Could a “Luna” destiny be considered? |

Shiba Inu price dropped to levels last seen in late September 2021, before the altcoin began its famous exponential rise to new highs. This massive drop comes at a time when the entire market is in the throes of fear and investors are selling their holdings.

The price of the Shiba Inu and its significant levels

The Shiba Inu price consolidation between February 2 and May 5 formed a descending triangle. This technical pattern contains lower highs and equal lows. By drawing trend lines connecting these trend lines, we get a descending triangle.

The objective of this setup is achieved by measuring the distance from the highest peak or first peak of the swing to the base of the triangle and adding it to the breakout point. For Shiba Inu, this metric is 37% and adding this value to the breakpoint reveals a target of $0.0000125.

Due to the panic selling in the crypto markets, Shiba Inu price crashed 57% in the past six days, falling well below its target. This move also closed the fair value gap extending from $0.0000094 to $0.0000135 and is currently bouncing off the $0.000094 support level.

As bitcoin price looks to trigger a relief rally, investors can expect Shiba Inu price to also see increased buying pressure, especially from market participants looking to accumulate SHIB at a reduced price. This development is likely to push SHIB up 31% from its current position to reach the immediate resistance barrier at $0.0000135.

Given the bearish outlook for the crypto ecosystem, Shiba Inu price is unlikely to continue heading higher. Therefore, interested investors could open a short position here. A rejection of this barrier could trigger another SHIB crash and push it down to $0.0000094.

If the sellers breach this barrier, the Shiba Inu price could dive to $0.0000061. This move would constitute a 55% descent from $0.0000135 and is likely where the bottom is.

The 30-day MVRV (Market Value to Realized Value) model supports this Shiba Inu price move. This indicator is used to track the average profit/loss of investors who have purchased SHIB tokens in the last month.

The light at the end of the tunnel

In general, a negative value indicates that these holders are in loss and a positive value indicates that the holders are in profit. The likelihood of liquidation is high in the latter case.

According to Santiment’s backtests, a value between -10% and -15% indicates that short-term holders are losing and long-term holders tend to accumulate under these conditions. This range is therefore referred to as “opportunity zone“, because the risk of liquidation is lower.

Currently, the 30-day MVRV is hovering around -46%, which is a perfect accumulation zone. The last time the index fell to these levels, SHIB was in an accumulation zone, which eventually led to a breakout.

However, this time the market structure is weak and can be interpreted as a short-term buy signal.

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