Shiba Inu [SHIB] bears could force a reversal soon, and here’s why
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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– The futures market and the price action pointed in different directions.
– The higher timeframe gets precedence, but the trade could be risky.
Trading contrary to the trend is always a risky business. Experienced traders can use lower timeframes to trade counter-trend moves while waiting for a retracement into a significantly higher timeframe area on the price charts. Shiba Inu [SHIB] was trading just beneath such a region.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Bitcoin [BTC] fell below the $30.4k mark in recent hours, but continued to hold on to the $30k level. Yet its volatility has been extremely low over the past five days, and a move in either direction could be quick and strong.
In mid-February, Shiba Inu saw a strong bounce off the $0.0000117 level, and in doing so, formed a bullish order block on the four-hour timeframe. But in early March, SHIB dipped beneath this level, and has retested the former bullish order block as resistance multiple times over the past six weeks.
Hence, it was a bearish breaker on the four-hour timeframe, and another rejection could occur soon. The RSI made a lower high while Shiba Inu pushed higher on the price charts, forming a bearish divergence.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
However, the OBV was on the rise, signaling demand behind the meme coin. Sustained pressure from the buyers could push Shiba Inu back above the breaker and invalidate the idea presented above. On the other hand, a bearish reaction at the breaker block could begin SHIB’s fall toward the next support level at $0.00000998.
The futures market continued to reflect bullish sentiment
The findings from Coinalyze showed that the idea of a Shiba Inu rejection was not in line with speculator sentiment. The funding rate rose over the past two days to show an increased number of long positions.
The Open Interest rose alongside the prices as well, showing that market participants were willing to bet on the continued rise in prices. The price action highlighted the chance of a bearish reversal, but the futures market showed bullishness- which would prevail?