SHIB: Bulls continue to defend December lows
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bulls have defended December lows since the mid-August dump.
- However, Open Interest rates remained muted below $20 million.
Shiba Inu [SHIB] maintained its price consolidation above the December low of $0.00000779 since the mid-August dump. The move helped SHIB prevent more losses after shedding over 20% in two consecutive weeks between 14 and 28 August.
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However, SHIB was poised to end August in the red on monthly performance. But bulls outright defend on the December low could continue if Bitcoin [BTC] traverses this path.
December low could continue to hold if BTC traverses this path
Although BTC’s pump and subsequent move above $27k on 29 August improved market sentiment, the altcoin market didn’t register a substantial move. BTC pumped +6%, while SHIB gained only 1.8% on the same day.
But the mild pump was rejected at the previous May low of $0.00000846. SHIB has been oscillating above the December low ($0.00000779) since mid-August, with the May range-low as an immediate resistance.
At the time of writing, BTC’s pump had waned and retraced to May mid-range near $27k. If it defends the mid-range as support in the next few hours/days, SHIB could also continue to defend the December low.
The bearish breakout from the above range could set SHIB to grace the $0.00000698 support.
Meanwhile, the RSI improved briefly but retreated below the 50-median, illustrating muted buying pressure. The CMF also moved sideways near zero, demonstrating stagnated capital inflows, reinforcing the neutral thesis.
Open Interest rate muted too
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A look at the demand on the derivative side showed a muted action, too. The Open Interest (OI) rates remained below $20 million from 22 August – over a week. It reinforces a stagnant demand in the futures market, a neutral bias.
However, the liquidations data showed more longs were liquidated across all timeframes in the past 24 hours before publication. The trend suggests a solid short-term bearish bias, but a BTC drop below $27k could confirm such an inclination.