Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- SHIB retreated to a critical demand zone at $0.00000720 on the charts
- A price reversal seemed likely, despite the lack of buyers’ leverage at press time
Shiba Inu [SHIB] has been under bears’ control since mid-August. A recent recovery attempt faced price rejection at a double roadblock near $0.00000760. However, the bulls were out to defend this crucial demand zone at press time.
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Is a reversal to the upside likely?
Source: SHIB/USDT on TradingView
The H12’s market structure was bearish after the recent recovery failed to exceed the previous high at the bearish order block (OB) of $0.00000760 (white).
The faltering near the $0.00000760 roadblock tipped sellers to extend gains. Sellers’ target was the demand zone and H12 bullish OB of $0.00000713 – $0.00000727 (cyan). If the Fed’s decision on 20 September is positive, SHIB could defend the demand zone and rally.
The critical potential resistance targets are $0.00000760, the December 2022 low ($0.00000779), and the previously cracked support zone of $0.00000785 – $0.00000824 (red).
Alternatively, a crack of the demand zone could force bulls to re-group at $0.00000698.
Meanwhile, the RSI remained below the median mark. It underscores the intense sell pressure since mid-August. Besides, the CMF, which was positive in early September, eased and wavered below zero at press time, reinforcing a decline in capital inflows.
Sellers still had market leverage
Source: Coinalyze
According to Coinalyze, the CVD (Cumulative Volume Delta) Spot extended decline from 13 September, confirming increased sellers’ market leverage over the same period.
How much are 1,10,100 SHIBs worth today?
However, the Accumulative Swing Index, which tracks the strength of price swings, registered an uptick. This could suggest a price reversal and a trend change.
Additionally, Coinglass data revealed that the Futures market data and Open Interest rates were up 68% and 4%, respectively, over the last 24 hours before press time.
These positive metrics further cement a likely price pivot to the upside, but the Fed’s rate decision could influence how far the rally will go.
