Can Shiba Inu defend the two-month low after recent selling pressure
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 favored the bears, and the divergence suggested further lows were possible.
- The next higher timeframe support beneath the VAL was almost 10% lower on the price charts.
Shiba Inu faced rejection at the 4-hour bearish breaker in the $0.000012 region. The bulls have consistently failed in their attempts to flip this region from resistance to support over the past two months.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
A few hours before press time, Bitcoin saw a small bounce in prices from $27.2k to $27.8k. So far, this was a classic retest of former support as resistance, and more lows were likely. The same held true for Shiba Inu as well.
The region highlighted in deep red was a bearish breaker on the 4-hour chart that SHIB has been unable to beat since 8 March. SHIB ranged within the two levels of support and resistance at $0.00001 and $0.0000117.
The Volume Profile Visible Range tool showed the Value Area High (VAH) and Value Area Low (VAL) were close to these two levels. The VAH coincided with the aforementioned resistance. The VAL was at $0.00001019, and the Point of Control was at $0.00001094.
The RSI was deep in bearish territory and showed a downtrend in progress. The market structure was also bearish after the move below $0.00001118 on 19 April.
Moreover, the RSI formed a hidden bearish divergence, highlighted in orange. This suggested the downtrend was likely to continue, with the next support at $0.000009.
How much are 1, 10, or 100 SHIB worth today?
The OBV has dropped over the past few days as well, underlining the severe selling pressure. The evidence at hand did not show a bounce in Shiba Inu prices was imminent, and the next week is likely to bring further losses.
The funding rate dropped to negative to show seller dominance
The funding rate began to hover around the negative territory for a few hours on 22 April, Coinalyze data showed. It has picked up since then but the sentiment behind SHIB was bearish. The Open Interest saw a tiny upward move over the past two days.
However long positions were discouraged and sellers remained in the driving seat. A rise in OI alongside falling prices will show a strongly bearish market. Shiba Inu traders can watch out for this possibility.