Analysis
Shiba Inu traders can target this range for their next move
When Shiba Inu faced rejection from near the local highs on 9 July, the Open Interest began to fall, showing bearish sentiment.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure of Shiba Inu was bearish on the higher timeframe charts.
- The short-term bullish momentum over the weekend has already begun to falter.
The crypto market has not been kind to meme coins. According to CoinMarketCap, Shiba Inu [SHIB] is the second-largest such coin by market cap. Dogecoin [DOGE] sits first, and Pepe [PEPE] at third.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
From 7 July to 9 July, Shiba Inu climbed from $0.00000706 to $0.0000078, noting a 10.5% gain. Yet, higher timeframe price charts showed that the coin lacked a bullish market structure despite the rally in June. The bears have been in control since late February.
The bullish order block has been a line of defense for SHIB bulls
Source: SHIB/USDT on TradingView
On 20 June, Shiba Inu formed a bullish order block on the 4-hour chart. Highlighted by the cyan box, it continued to serve as a region of support. Moreover, SHIB has formed a range over the past two weeks.
Marked in yellow, this range extended from $0.00000703 to $0.00000785. The most recent bounce saw whale transactions climb to a three-month high but the range highs were not tested before the bulls faced rejection.
The subsequent move toward the mid-range line (dotted white) showed that the sellers were dominant in the market. The OBV has oscillated over the past two weeks without a clear direction. So too did the RSI as momentum swayed from bearish to bullish and back again.
The Open Interest surge over the weekend began to falter
Source: Coinalyze
As SHIB faced rejection from near the range highs on Sunday, 9 July, the Open Interest began to fall. This showed discouraged longs. On 8 July, the trend was the opposite- short-term speculators were wildly bullish as more than $10 million flowed into the market.
How much are 1, 10, or 100 SHIB worth today?
The funding rate of the asset remained bullish, which suggested that the majority were not shorting Shiba Inu. Yet that does not mean the sentiment toward the meme coin was bullish.
