SHIB’s pullback eases at this key level – Will it hold?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SHIB’s H4 and D1 market structures were bearish at the time of writing.
- There was short-term accumulation as per on-chain metrics data provider Santiment.
Bitcoin [BTC] has been holding above $30,000 a week since 21 June. However, its short-term fluctuations above $30k have set most altcoins into massive pullbacks. In particular, Shiba Inu [SHIB] retraced 16%, dropping from $0.00000846 to $0.00000704.
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Investors look forward to further upside with BTC firmly above $30k. While the sentiment could likely bolster SHIB for extra gains, what’s its short-term prospect? Let’s explore the 4-hour chart for cues.
Will the $0.00000704 support hold?
Although SHIB’s price action climbed above the December low of $0.00000784 briefly, the subsequent retracement has flipped the H4 market structure to bearish. Similarly, the daily chart was bearish, but both structures could flip bullish if SHIB mounts above $0.00000850.
Notably, the $0.00000833 was a previous range-low, and it then turned to resistance. So, if the short-term support of $0.00000704 holds the retracement, SHIB could rally towards the region of hurdle between the December 2022 low and previous range-high ($0.00000784 – $0.00000833). If they clear the above hurdle, SHIB bulls could focus on the $0.00000920 level.
But further structure weakening will be confirmed if the $0.00000704 support gives away. Such a crack could make a retest of $0.00000650 inevitable.
The RSI has eased close to the oversold zone, emphasizing a decline in buying pressure in the past few days. Also, the OBV edged lower, further confirming muted demand for the memecoin in the same period.
Negative exchange flow balance means …
According to Santiment, SHIB’s Exchange Flow Balance was negative and stood at -15.4 billion at the time of writing, meaning more tokens left exchanges than moved in. That’s a sign of short-term accumulation. The trend was further confirmed by the spikes in Supply Outside of Exchanges. So, the $0.00000704 support could hold if the trend persists.
How much are 1,10,100 SHIBs worth today?
Even the weighted sentiment, although negative, registered massive improvement since mid-June. Bulls must watch out for the $0.00000784 – $0.00000833 resistance zone.