Published in: April 25, 2024
- Shiba Inu reclaimed a support zone that had been in place since mid-March.
- Increasing buying pressure could see the token begin to rally.
Shiba Inu [SHIB] trended lower on lower time frame charts over the past month.
However, with bitcoin [BTC] Trading within a range and showing signs of consolidation after the halving, altcoins could see increased volatility.
The reduced correlation between Shiba Inu and Bitcoin could help bulls fuel a recovery.
New Test of Previous Support Could Point the Next Direction
Source: SHIB/USDT on TradingView
The market structure on the 12-hour chart was bullish, but last month’s pullback meant that the internal structure remained bearish.
SHIB failed to recover and faced resistance at the 50% Fibonacci retracement level.
Unless it can rally above $0.0000275 and $0.0000295, a short-term bearish bias was justified. Meanwhile, recovery attempts appeared to be successful.
The CMF was above +0.05 and signaled strong capital inflows and buying pressure. The RSI on the 12-hour chart was at 47 at press time, but briefly rose above the neutral 50 level in recent days.
This could be a precursor to a bullish move.
The accumulation throughout the network was very positive
The 30-day MVRV ratio has been negative for most of April. This showed that the holders were lost and lacked conviction. Additionally, the average coin age has been trending steadily upward over the past six weeks.
Along with the MVRV, it signaled a good buying opportunity. Weighted sentiment was also positive in recent days, highlighting a shift in sentiment in favor of the bulls.
Realistic or not, here is SHIB’s market capitalization in terms of BTC
At press time, SHIB was trading at $0.00002486. The short-term technical outlook remains bearish, but traders should be prepared for an upward move.
A selloff in the Bitcoin market could still drag Shiba Inu and other altcoins lower.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Next: From holding to selling: Bitcoin miners adjust tactics after halving
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Next: From holding to selling: Bitcoin miners adjust tactics after halving
