Shiba Inu shows possibility for short-term recovery – can buyers rally?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Despite bearish breakout from range-bound formation, SHIB showed signs of bullish recovery.
- Funding rates were largely positive to hint at good recovery opportunities for buyers.
Shiba Inu [SHIB] broke out of its sideways structure with a bearish candle on the higher timeframes. However, the memecoin showed signs of recovery, as of press time.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Yet, with Bitcoin [BTC] still below the $27k mark, it was also possible that the crypto market could experience another wave of selling pressure.
Do bulls have the capacity to rally?
Even though the market structure of Shiba Inu remained bearish on the lower and higher timeframes, buyers displayed some positive recovery signs.
The Relative Strength Index (RSI) pushed up strongly from the oversold zone and stood at 44, as of the time of writing. This hinted at rising buying pressure, as bulls look for a price rebound.
This rise in buying pressure produced modest gains of 2.6% over the past day for buyers. However, a sustained bullish rally would require a more aggressive approach by buyers.
This was echoed by the On Balance Volume (OBV) which remained in decline. Thus, if bulls can scale the $0.000007 price hurdle and BTC moves above $27k, a sustained bullish rally could materialize.
Realistic or not, here’s SHIB’s market cap in BTC terms
Funding rate could aid bullish recovery
Data from Coinglass showed that Shiba Inu’s funding rate was largely positive over the past five days. This could actively aid a bullish recovery in the short term.
Furthermore, the exchange long/short ratio showed that longs and shorts were evenly matched in terms of open positions. This revealed that while a price bounce was possible from this level, buyers should also be wary of further price drops.