Shiba Inu is defending key support- Are shorting gains limited?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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- SHIB was on the verge of a bullish MA crossover.
- Recovery could advance if bulls bypass a key hurdle.
Shiba Inu [SHIB] strongly recovered after securing the $0.00001030 support. At the time of writing, the meme coin’s price action was on the verge of a bullish crossover – a bullish signal that could push the recovery forward. However, bulls must clear a key obstacle to advance the recovery efforts.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Bitcoin [BTC] reclaimed its local highs of $26K and could further boost SHIB’s recovery if the king coin doesn’t falter below the recent highs.
Can bulls bypass the $0.00001091 hurdle?
SHIB’s drop after price rejection at the key sell pressure zone below $0.00001200 was prevented by the $0.00001030 support. SHIB fronted a strong recovery at press time but approached another crucial resistance at $0.00001091.
If bulls overcome the hurdle, SHIB could retest or move past $0.00001133. That would give bulls leverage to retest the sell pressure zone below $0.00001200, which could set SHIB into retrace as most holders could offload holdings at the level to lock short-term gains.
A breach of the $0.00001030 support could attract increased selling, but the drop could slow at $0.00000987. Therefore, the lower support level could act as a short-selling target.
The 3-hour chart showed a potential MA bullish cross alongside a golden cross, as shown by the MACD (Moving Average Convergence Divergence). A confirmation of the MA cross could tip bulls to gain more leverage and bypass the immediate hurdle at $0.00001091.
The Relative Strength Index (RSI) was slightly above the 50-mark, showing bulls’ limited leverage, but bears can’t be completely overruled unless the immediate hurdle is cleared.
SHIB’s exchange outflow spiked, but …
As per Santiment, SHIB’s exchange outflow spiked, suggesting extra withdrawals from exchanges – an indication of short-term accumulation. Besides, the sentiment rose slightly in the positive territory, indicating a bullish sentiment that could boost the recovery.
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However, the exchange SHIB long/short ratio showed bears had fair leverage on the 4-hour timeframe, at the time of writing.
It indicates that bears couldn’t be overruled, especially as price action approach a key resistance level of $0.00001091. Tracking BTC’s movement could offer better trade opportunities.