Shiba Inu [SHIB]: Will selling pressure continue or can bulls reverse the trend?

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

• SHIB bulls didn’t manage to see any respite, as aggressive selling pressure continued.
• Furthermore, Active deposits on exchanges were on the rise.

Shiba Inu [SHIB] continued its massive slide-off, posting losses of 10.4% over the last seven days. A recent price report highlighted the meme coin’s lack of volume and bullish momentum. This has seen SHIB trade under the $0.00001 resistance, since 1 May.

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

Bitcoin’s [BTC] movement below $28k could accelerate the process of SHIB’s price dipping even lower.

Sellers made the most of bearish momentum

Source: SHIB/USDT on Trading View

SHIB’s price dip began from the $0.000011 price zone considering the H4 timeframe. The bearish order block confluence with the resistance level led to a strong downward move. The bearish momentum saw the price breach three other support levels to take SHIB to the January lows of $0.00000088, as of press time.

This highlighted the strong bearish push in the market. The Relative Strength Index (RSI) remained in the oversold zone for over 48 hours with a reading of 25.7, as of the time of writing. The On-Balance Volume (OBV) also remained in perpetual decline.

Despite the bearish momentum, one indicator suggested that a bullish reversal might be on the way. The Chaikin Money Flow (CMF) rose sharply and stood at 0.09.

The $0.000008 support level acted as the bullish springboard for SHIB’s January rally. With the price approaching this support level again, SHIB could see a bullish rally soon.

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SHIB sentiment remained heavily bearish

Source: Santiment

Data from Santiment showed that active deposits on exchanges for SHIB were on the rise, even as its price continued to go lower. This hinted at sustained selling pressure in the short to mid-term.

Furthermore, Open Interest continued to slide down alongside falling prices from 6 May, which showed that traders were still actively shorting Shibu Inu. This was a sign of significant bearish sentiment.

Source: Coinalyze