- SHIB’s recovery hit over 20% as bulls aim for further gains.
But the recovery faced hurdles that could only be bypassed if BTC extended recovery.
As an analyst with extensive experience in cryptocurrency market analysis, I’ve closely observed Shiba Inu’s [SHIB] recent price action and technical indicators. The memecoin has shown impressive recovery since May Day, up over 20%, but it still faces hurdles that could only be bypassed if Bitcoin [BTC] extends its recovery.
As a researcher studying the cryptocurrency market, I’ve observed that Shiba Inu (SHIB) has experienced a significant surge, with gains of over 20% since May Day. This upward trend has helped to mitigate some of the losses we saw in April. Nevertheless, it’s important to note that, at this moment, SHIB has not yet managed to turn its market structure bullish on the longer-term charts.
Near the 50% mark of the previous Fibonacci sequence, the market encountered two significant obstacles. Will buyers be able to surmount these barriers and regain ground lost in Q1?
Can bulls bypass sellers eyeing the 50% Fib level?
As a market analyst, I employed the Fibonacci retracement tool to assess the price action on the daily chart, drawing lines between the January lows and Q1 highs. The significance of this analysis lay in the identification of the price level at $0.00000270 as a crucial point based on the tool’s indications.
The 50% Fib level and daily bearish order block functioned as a notable resistance point, potentially causing significant selling pressure.
As a market analyst, I noticed that the trendline resistance level was situated beneath the prominent red sell wall. However, the RSI (Relative Strength Index) and Chaikin Money Flow did not indicate any significant buying or selling pressure, respectively. In simpler terms, the resistance was weaker than the sell wall, but neither the RSI nor the CMF suggested any clear bullish or bearish trends at that moment.
At a price of $0.0000270, SHIB faced feeble purchasing demand and minimal financial investments, making its recuperation more complex.
As a crypto investor, I noticed an interesting development in the market. The sell wall, which initially appeared to be a barrier for further price decline, turned out to be the neckline of a double-bottom pattern instead. This is a common bullish reversal formation where the price bounces back after hitting a support level twice before continuing its upward trend.
In order to obtain an advantage, bulls need to hurdle the two obstacles in the way. Moreover, it’s necessary for the market to switch to a bullish trend by forcefully retaking the price above $0.0000270.
Should the bulls prevail, the $0.000031 will be the immediate target.
If the resistance at the double price barrier is met with a significant selling pressure, there’s a risk that Shib may slide back down to $0.0000225.
Are market players negative on SHIB’s price?
The recent recovery was accompanied by positive sentiment on the memecoin.
Based on the Santiment analysis, the sentiment towards SHIB‘s price turned negative, implying a possible opportunity for investors to consider bearish positions.
Furthermore, there was a noticeable increase in selling activity, signified by the decreasing supply available on exchanges (represented by the orange line).
The metric measures the volume of SHIB moving into exchanges, with a higher number suggesting a significant increase in inflows and potentially heightened selling activity.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Instead of “On the contrary,” you could use “Conversely” or “In contrast.” A decrease in the supply available on an exchange indicates that cryptocurrencies are being withdrawn from the exchange, potentially signaling buying pressure.
As a market analyst, I believe that Bitcoin‘s [BTC] sustained rise above $65,000 could potentially influence Shiba Inu [SHIB]’s price behavior. Specifically, if BTC continues to advance, it may put pressure on SHIB to break through its neckline resistance. Therefore, closely monitoring Bitcoin’s price movements is essential for understanding Shiba Inu’s potential next steps.
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2024-05-06 23:04