Connect with us
Active Currencies 14771
Market Cap $2,545,197,356,518.00
Bitcoin Share 51.23%
24h Market Cap Change $-0.84

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

2min Read

Shiba Inu continued to fall down the price charts after the rejection at the $0.000011 resistance level. However, one indicator suggests a bullish reversal might not be far off.

Share this article

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.


Is your portfolio green? Check the Shiba Inu Profit Calculator


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

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.