- Shiba Inu continued its downward trend, losing a key support zone in the process.
- Selling volume has been reduced, giving the bulls some hope of a recovery ahead.
Shiba Inu [SHIB] fell below a key demand zone in the $0.000024 region. Selling pressure prevailed despite an outflow of tokens from exchanges.
Liquidated long positions have also contributed to accelerating recent losses.
A range formation was possible, but if bitcoin [BTC]
fell below $59,000, Shiba Inu coin price could retrace to the next Fibonacci support level.
The balance of buying and selling was surprising
Source: SHIB/USDT on TradingView
The RSI on the 12-hour chart was at 33 and was showing strong bearish momentum. He came within a stone’s throw of falling below 30, which would indicate oversold conditions. That alone will not guarantee a recovery.
The current trajectory of Bitcoin and the rest of the market could easily drag SHIB down another 19%. Fibonacci retracement levels (pale yellow) highlighted the next support level at $0.0000172.
In mid-April, the $0.0000212 level served as support. It could give another rebound in this new test. While the price trended lower in April, the OBV remained range-bound.
This suggested that the selling pressure was not overwhelming.
Therefore, as long as OBV does not lose the lower support level, SHIB bulls can expect a recovery from the two highlighted support levels.
The Effect of Liquidations on the Price of the Shiba Inu Coin
Read Shiba Inu [SHIB] Price prediction 2024-25
Data from Open Interest showed that it has seen a sharp drop in the last ten days. Along with the price losses, it indicated a firm bearish sentiment. Speculators were not willing to bet on SHIB price gains.
Long liquidations also saw multiple spikes in the last 48 hours. This was a forced selling signal in the market, which added to the downward pressure on the price of the Shiba Inu coin.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
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