- Shiba Inu reclaimed a support zone that had been in place since mid-March.
- The increased buying pressure could see the token begin its recovery.
Based on my analysis of the Shiba Inu [SHIB] chart and the current market conditions, I believe that the token is poised for a potential recovery. The increased buying pressure and heavy capital inflow indicated by the positive CMF and RSI readings suggest that bulls are eager to enter the market.
Shiba Inu [SHIB] was trending downward in the lower timeframe charts over the past month.
Although Bitcoin [BTC] trades between set limits and indicates stability post-halving, the altcoin market may experience heightened volatility instead.
The reduced correlation between Shiba Inu and Bitcoin could help the bulls enforce a recovery.
Retest of the former support could set the next direction
From an outside perspective, I observed a bullish market structure unfolding over the course of the 12-hour chart. However, taking a closer look at the recent developments over the past month, the underlying market conditions appeared to be bearing a bearish stance.
SHIB was unable to make a recovery, facing resistance at the 50% Fibonacci retracement level.
If the price stays below $0.0000275 and $0.0000295, it’s been suggested that a pessimistic view for the short term is appropriate. However, there have been efforts at recovery which have shown some promise in the interim.
I’ve noticed that the Composite Moving Average (CMA) surpassed 0.05, indicating a substantial influx of capital and strong buying interest. Meanwhile, the Relative Strength Index (RSI) on the 12-hour chart was at 47 when last checked, but it had briefly climbed above the neutral threshold of 50 in the past few days.
This could be a precursor to a move higher.
Network-wide accumulation was a huge positive
For the past month, or specifically since the beginning of April, the 30-day MVRV ratio has generally been showing a minus sign. This indicator suggests that holders have incurred losses and have been hesitant or uncertain about their investments. Additionally, over the last six weeks, we’ve observed a significant increase in the average age of coins in circulation.
I’ve noticed an interesting development in the market recently. The MVRV (Moving Average Value Realized) indicator and I have aligned on a potential buying opportunity. Moreover, the Weighted Sentiment has been positive over the past few days, indicating a shift in sentiment towards the bullish side.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
Currently, SHIB is priced at $0.00002486 in the markets. Despite the pessimistic short-term technical forecast, investors should stay alert for potential price increases.
A wave of selling in the Bitcoin market could still drag Shiba Inu and other altcoins lower.
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2024-04-25 21:11