Shiba Inu soars 23% before falling by 14%: Will the climb continue?
- Shiba Inu maintained its bullish bias on the price charts despite volatility.
- Key support levels were highlighted for SHIB buyers to defend this week.
Shiba Inu [SHIB] saw heightened volatility over the weekend. The meme coin shot up by 23% on the 16th of December but fell 14.39% from the highs of the 17th of December. At press time, SHIB bears seemed determined to continue the fall.
Yet, it is expected that the bulls can fight off these setbacks soon. The bias remained bullish, but this depended heavily on Bitcoin [BTC] staying above the $40k mark.
The swift rejection from the overhead resistance was discouraging
On the 16th of December, Shiba Inu rallied from $0.00000946 to $0.00001195 in 24 hours. This continued the bullish market structure of SHIB by setting a new higher high.
The RSI also remained above the neutral 50 mark to highlight buyers were in control. En route, the $0.0000105 resistance zone from mid-August was breached.
This rally was followed by a plunge lower that commenced over the past 24 hours. The bulls could not defend the $0.0000105 area as support, which suggested that the bulls were weak.
Yet, the Chaikin Money Flow indicator was at +0.08 on the one-day chart, showing significant capital flow into the market.
Therefore, a move to the $0.0000095 or the $0.0000091 levels could provide a buying opportunity. A drop below the latter would shift the market structure bearishly.
The liquidation heatmap also pointed to an impending drop
AMBCrypto analyzed the liquidation heatmap from Hyblock with a lookback period of one month. It showed that the next region of interest was at $0.000009, where a huge amount of estimated liquidation levels lay.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
Since this pocket coincided with the findings of the AMBCrypto’s technical analysis, it reinforced the idea of a resurgence for the bulls from this area.
However, if Bitcoin falls below the $39.6k and $38k levels, a SHIB recovery would become much less likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.