Shiba Inu: Is SHIB ready to break out of this compact range?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Shiba Inu extended its sideways movement, as the price continued to range under the $0.00000807 level.
- A 6.5% drop over the past two days hinted at a bearish breakout of the range.
Shiba Inu [SHIB] traded within a compact price range over the past two weeks. Price ranged between the low of $0.00000697 and the high of $0.00000760. Despite the sideways movement, a range breakout looked increasingly likely.
Realistic or not, here’s SHIB’s market cap in BTC terms
With Shiba Inu’s price dropping by 6.5% over the 48 hours, this suggested that the breakout could be a bearish one.
Sellers look to break out of long-term range
SHIB’s market structure on the higher and lower timeframes has been bearish since mid-August. The price rejection at the $0.00001 price zone ushered a wave of sell-offs that saw the price sink below the bullish stronghold of $0.00000807.
Despite the bullish pullback at $0.00000807, the selling pressure flipped the level to resistance in early September. While the price has ranged after the $0.00000807 level was flipped to resistance, further bearish activity could see SHIB drop lower.
The Relative Strength Index (RSI) remained under the neutral 50, highlighting the intense selling pressure. Furthermore, the Chaikin Money Flow (CMF) declined sharply from positive to negative during the range period.
A successful bearish breakout will see sellers target the June low of $0.00000651. Alternatively, if Bitcoin [BTC] rallies again above $27k, bulls could spring a surprise rally from the current range.
Open Interest underscored the bearish sentiment
Data from Coinalyze showed that the Open Interest (OI) has been on a downtrend. Over the past 24 hours, it declined by 3.57%, reiterating the bearish bias on SHIB’s price chart.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Additionally, the funding rate fluctuated on the lower timeframes, hinting at a lack of sustained momentum. This suggested that further dips could be likely for Shiba Inu in the long term.