SHIB’s correction cleared most of 2023 gains- Can bulls prevail?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• SHIB was in a bearish market structure.
• A sharp correction has cleared most of the early year’s gains.

Shiba Inu [SHIB] appreciated 100% in the past two months, reaching a new high of $0.00001574. However, the correction afterward threatened to clear almost all the gains made.

In the past few days, SHIB has broken key supports and could break a few more if the market uncertainty on Bitcoin [BTC] persists in the coming days/weeks. 

Read Shiba Inu [SHIB] Price Prediction 2023-24

Can $0.00000967 prevent the plunge?

Source: SHIB/USDT on TradingView

SHIB plummeted over 38% since the price rejection at $0.00001574 in early February. Bears managed to clear the obstacles at 50-day MA and 100-day MA. However, the 23.6% Fib level ($0.00000967) stood in the bears’ way, at the time of writing. 

Bears could enjoy additional opportunities if SHIB closes below the 23.6% Fib level ($0.00000967). They could short the meme coin and lock gains at $0.00000935, $0.00000843, or $0.00000779. A close above the 23.6% Fib level will invalidate the above thesis. 

A bounce from the 23.6% Fib level would tip bulls to inflict a potential recovery targeting the 38.2% Fib level ($0.00001083), but they must clear the hurdle at 100-day MA ($0.00000967). Other significant resistance lies at 50% and 61.8% Fib levels. 

How much are 1,10,100 SHIBs worth today?

The RSI (Relative Strength Index) slid into the oversold territory, indicating intense selling pressure, at the time of writing. Moreover, the OBV dipped, further denting trading volumes that could undermine a strong buying pressure and recovery. 

SHIB saw increased positive sentiment and active deposits

Source: Santiment

As per Santiment, SHIB exhibited a highly positive elevation on the weighted sentiment metric. It suggests investors’ outlook on the asset improved, which could boost a potential recovery.

In addition, there was an uptick in whale activity at the time of writing that could tip bulls to secure the 23.6% Fib level. 

However, active deposits also increased, indicating more SHIB moved to central exchanges for offloading – a sign of short-term sell pressure. But, a recovery could be possible if BTC reclaims the $20K level and surges upwards.