Shiba Inu: What’s next as this key roadblock persists
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Price action eased below D1 bearish order block.
- The open Interest rate declined ahead of Fed’s decision.
Since the second half of June, Shiba Inu [SHIB] has been oscillating between crucial levels of $0.00000700 – $0.00000850. A closer look at the charts revealed that the range extremes coincided with key order blocks worth acknowledging, especially for macro-traders targeting volatility ahead of the Fed’s decision on 25/26 July.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
In the meantime, Bitcoin [BTC] managed to front a daily session close above $30k on Sunday, 23 July. That was a notable fete as the King coin struggled to make a daily candlestick session close above $30k since Wednesday, 19 July.
For BTC, the $29.3k – $29.5k remained a key level to watch to determine the market direction before and after the Fed’s decision. A breach below the range-low could offer bears an edge, while a convincing defense of the zone could bolster bulls across the market.
Which way will SHIB sway?
For perspective, order blocks (OB) are areas of high-volume trades placed by major or institutional players. In most cases, the price action tends to react from these areas. So, confirmation or invalidation of the order blocks can determine market trends and sentiment changes.
So far, SHIB has faced price rejections at the daily chart bearish OB of $0.00000785 – $0.00000824 (red).
If the Fed decision unnerves investors, the lower support zones, especially the H4 bullish order blocks of $0.00000733 – $0.00000749 (white) and $0.00000698 – $0.00000719 (cyan), will be of key interest to lower timeframe traders looking for buy opportunities.
Above the D1 bearish OB and roadblock lays the previous range-low of $0.00000850. SHIB can only confirm extra bullish intent if it closes above the previous range-low.
Meanwhile, the Relative Strength Index wavered near the neutral level while the On Balance Volume chalked a sideways movement. It reinforces a neutral position and the calm before the storm (volatility) induced by the Fed decision.
How much are 1,10,100 SHIBs worth today?
The futures market flashed negative signals
According to Coinalyze’s 1-hour chart, CVD (Cumulative Volume Delta) and Open Interest (OI) rates treaded southwards since mid-July.
It shows buying volumes and demand in futures markets for SHIB have eased in the same period – a bearish inclination. So, lower timeframe traders could wait for a retest of the lower support zones (H4 order blocks) before making moves.