SHIB drops beneath a zone of support, traders can watch out for this

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

• The bulls were exhausted after an intense struggle at a support zone over the past two weeks.
• This development could see SHIB drop another 15% lower in May.

Shiba Inu has fallen lower down the price charts after the rejection at the $0.0000117 resistance on 16 April. The Shiba Inu community had some gripes with the dev team as well, which came to the forefront after the decision to restrict the listing of Bone ShibaSwap [BONE].

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

A recent price report highlighted the importance of the support zone at $0.00001. In recent hours this area gave way after the bulls were exhausted holding on. Where could SHIB go next?

Short sellers can wait for a retest and rejection at the bearish breaker

Source: SHIB/USDT on TradingView

The H4 bullish order block at $0.00001 was highlighted in cyan. It has confluence with a higher timeframe support level at $0.0000998 as well. However, this level was breached in the past 48 hours. Moreover, the March lows at $0.00000965 were lost as well.

This development showed strong bearish sentiment in the market. The former bullish order block will likely act as a bearish breaker upon retest and could offer short sellers an opportunity to short the asset.

The RSI was at 28 to show sizeable downward pressure, although the CMF was yet to cross over beneath the -0.05 mark.

Is your portfolio green? Check the Shiba Inu Profit Calculator

Therefore the CMF hinted that selling pressure was not yet dominant, but the price action highlighted bearish intent. A retest and rejection from the $0.00001 area will likely see Shiba Inu fall to the $0.0000079 level.

SHIB sentiment was heavily bearish over the past week

Source: Coinalyze

The Open Interest began to rise alongside falling prices after 29 April, which showed that speculators actively shorted the Shiba Inu market, and was a sign of extreme bearish sentiment. Over the past few days, the short-selling appeared to have tapered off.

Yet, the sentiment continued to favor the sellers. The falling OI and prices over the past two days were indicative of discouraged buyers. Together with the price action, it highlighted the likelihood of further losses for Shiba Inu.