Shiba Inu sees strong bullish price action as demand rises

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

• Shiba Inu bulls made a convincing argument for further gains for the meme coin after the recent rally.
• A weak Bitcoin or volatility on Monday could negatively impact Shiba Inu’s momentum.

Shiba Inu [SHIB] noted large bullish strides on the price chart over the past few days. Measured from the recent lows at $0.0000076, Shiba Inu has gained close to 14% within the past six days. This was impressive given Bitcoin’s [BTC] lackluster price action over the past week.

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

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Traders should exercise caution, though. The high and low of 31 July, Monday, could dictate the significant levels for the next week. The monthly candle was on the verge of closing as well, which could induce further volatility in the market.

The bullish structure break on high volume showed the buyers had a strong impetus

On the 1-day chart, the trend was not yet bullish but the structure flipped bullishly in June after the rally to $0.00000846 on 22 June. The past month saw SHIB prices return to the $0.0000007 support zone.

On the 4-hour chart above, the past month’s consolidation and gradual push higher saw a large northward shove on 28 July. The market structure shifted bullishly on the H4 chart and was accompanied by a large fair value gap.

This showed bulls were in control, followed by a lower timeframe pullback to the $0.0000082 region. The RSI was above 70 to show hefty bullish momentum and the CMF at +0.22 showed significant capital flow into the Shiba Inu market.

The Open Interest trended higher alongside prices

The breakout past the local resistance region on 28 July was accompanied by heightened trading volume on the 4-hour price chart.

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Realistic or not, here’s SHIB’s market cap in BTC’s

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The 1-hour chart from Coinalyze showed that the Open Interest also saw a massive move higher, climbing from $40 million to $60 million and rising. This was a sign of bullish conviction from SHIB speculators.

Apart from demand, the breakout was also fueled by the short liquidations as seen on the liquidation chart. Therefore, buyers can use the $0.0000082 zone as a marker- a move below this region would signal short-term bearishness.