Shiba Inu bulls beware as SHIB retests this six-week resistance yet again

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The market structure remained bearish.
• A breakout was uncertain and SHIB traders should be prepared for rejection as well.

Shiba Inu was forced to retrace a good chunk of the gains it made earlier in 2023. Whether the meme coin can continue to rally higher, or whether the bears will seize the upper hand once again remains to be seen.

Realistic or not, here’s SHIB’s market cap in BTC terms

The evidence at hand showed that the bearish possibility was slightly more likely. Yet, if the bulls can manage to blitz past a nearby area of resistance, the bulls will be firmly in control of the market once more.

Shiba Inu is at a make-or-break level once again

Source: SHIB/USDT on TradingView

The uptrend during 2023 spanned from early January to early February and Shiba Inu noted gains of close to 97% in just over a month. Since then, the price has been in a phase of retracement. The $0.0000079 level, which had been important even in October and November, was tested as support yet again in March.

During the pullback, SHIB fell beneath the $0.0000117 level, which was a recent higher low during the early 2023’s rally. In doing so, the market structure of Shiba Inu was shifted to bearish. Moreover, the $0.0000117-$0.0000125 area (highlighted in red) was likely to serve as a significant resistance in the weeks to come.

How much are 1, 10, or 100 SHIB worth today?

The structure of SHIB would be flipped to bullish after a breakout past $0.0000117. At the time of writing, the RSI had managed to climb above neutral 50, which was indicative of a possible shift in momentum.

However, the CMF was at -0.01, showing a lack of buying pressure. Hence, buyers should be more cautious than enthusiastic based on the evidence from the 1-day chart.

The decline in mean coin age signified a distribution phase for Shiba Inu

Source: Santiment

The retracement into the $0.000008 area in March can be viewed as a healthy pullback for SHIB bulls to accumulate before the next leg upward. Yet, the mean coin age metric noted a sharp drop in March, which suggested selling pressure had been intense.

The 30-day MVRV ratio climbed into positive territory, which raised concerns that holders could choose to take profit soon as SHIB was not in a strong uptrend, and resistance was imminent. On the bright side, the weighted sentiment was near the highs from March.