Shiba Inu bulls wait for a sign to go long- How good are their chances?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The meme coin has formed a short-term range measuring 9% from low to high.
- The buy orders to the south suggested bears could have a hard time forcing prices lower.
Shiba Inu [SHIB] saw a rise in daily transactions and TVL as the Shibarium ecosystem performed well. A recent report highlighted bearish sentiment behind the meme coin, but there was a massive amount of SHIB withdrawn from exchanges.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
The price action has been bearish in the past four days and losses of just over 7% were inflicted. On the other hand, Shiba Inu was trading above a significant demand zone. We may see another bounce to the $0.00000846 level next week.
Shiba Inu has a short-term bearish market structureOn the 4-hour and lower timeframe charts, SHIB has a bearish structure. It has been in a downtrend in the past five days after the rejection from the $0.00000846 resistance. There was a support level at $0.00000776 that has served well in the past ten days.
Further south, there was a bullish order block from the daily chart that spanned from $0.000007-$0.0000076. This area was highlighted in cyan and has been tested twice in the past two weeks. Both instances saw a bounce- but the second one was weaker than the first.
This implied the possibility that the Shiba Inu bulls were tiring. The OBV has been in a resolute downtrend since mid-August and recovery was not initiated. The RSI also showed strong downward momentum.
The Open Interest saw a slight uptick- was this enough evidence to show market sentiment was beginning to sway?On 31 August and 1 September, the Open Interest fell lower alongside prices. This was a sign of discouraged longs and bearish sentiment. It has not turned around by a significant amount, but the OI did see a minor bounce on 3 September.
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MobChart data showed that there was limit buy orders for close to 133 billion SHIB in the $0.0000078-$0.0000077 region. This amounted to $1.04 million and was a notable wall of buyers.
A test of this region could see bearish pressure weaken and another bounce in prices. It was unclear if Shiba Inu can initiate a short-term uptrend, but scalpers can target the $0.0000084 level to take profit on their longs in the scenario of a bounce from $0.0000077.