Assessing how Shiba Inu [SHIB] will present an attractive selling opportunity
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- The daily structure has been bearish with the lower timeframe momentum southbound too
- Further losses for Bitcoin could see SHIB shed value rapidly on the charts
Shiba Inu has been bearish on the price charts in recent weeks. Investor sentiment has been negative and the trading volume also saw a fall in recent days. This, although the network performance has remained healthy.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
For Bitcoin‘s part, although it approached a critical level of support, it remained uncertain whether the downtrend across the crypto-market would see some relief. Federal Reserve Chair Jerome Powell cautioned that interest rates could head higher, an update that negatively impacted investor sentiment.
A bounce to the imbalance above could present a shorting opportunity
On the daily chart, the structure was bearish after SHIB broke beneath the higher low at $0.0000117 (shown in orange). This occurred on 3 March and the price has also left a fair value gap (white) in this zone. Therefore, the conclusion is that sentiment was strongly bearish and sellers dominated the market.
The RSI reflected the shift in bias when it fell below the neutral 50-mark and retested it as resistance in late February. However, the OBV did not yet note large losses, although it did fall under a support level from February. This highlighted that Shiba Inu sellers are likely to strengthen in the coming days.
Further above the imbalance seemed to be a bearish order block at $0.0000123. This zone has acted as a vital area of supply and demand over the past two months. Hence, a retest of this zone would likely present a good risk-to-reward shorting opportunity.
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Meanwhile, the next levels of support were at $0.0000105 and $0.0000094 – 3.4% and 13.2% below the price of SHIB, at the time of writing.
Daily active addresses trended lower but accumulation seen
The 90-day MVRV ratio hit 6-month highs in early February and has fallen since. At press time, it was in negative territory, implying that short holders were at a loss overall. That did not mean that selling pressure would abate but highlighted that holders likely booked a profit in February.
The daily active addresses count has declined since 21 February as it formed a series of lower highs. Meanwhile, weighted sentiment retreated into the negative territory after a strong showing in early March.
On the contrary, the 90-day mean coin age has been on the rise, signalling a network-wide accumulation phase. This, however, might not immediately flip the downtrend.