Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the writer.
- SHIB hit a bearish order (OB) block lower time frame on the 12-hour chart.
- A price rejection on this OB could tip the scales in favor of the bears.
At press time, SHIB was trading at $0.00000849. The candlestick on the 12 hour chart showed a shooting star with a long tail wick, indicating the intense opposition facing the SHIB bulls from sellers.
The previous price rejection came on a bearish $0.00000855 order that existed on the three-hour chart. If this hurdle persists (red zone), the SHIB bulls could lose ground to the bears, forcing the price down to this level.
Read by Shia Inu [SHIB] price prediction 2023-24
The $0.00000855 Hurdle: Can Bulls Clear It?
SHIB fell below its late-December trading range of $0.00000822 – $0.00000836 (yellow lines). But $0.00000792 kept the downtrend in check, offering the bulls strong support to start a rally.
The rally started on January 1, 2023 but was forced to cool off after hitting the obstacle (red zone). The correction settled at the late-December trading range support of $0.00000822.
Yet another rally, as of press time, struggled to clear the hurdle. If the hurdle persists, SHIB could face another pullback to $0.00000822 in the next day or two. Therefore, if a trend change is confirmed, the level can serve as a short selling target for the bears.
The relative strength index (RSI) and the money flow index (MFI) faced rejections by 50 and 60 marks, respectively. Subsequently, the indicators moved higher, indicating more buying pressure and accumulation.
But the RSI was also rejected at the 60 mark, causing a drop in buying pressure. If the trend repeats, it could signal a price reversal.
However, a break above the bearish OB at $0.00000873 would give the bulls more leverage and invalidate the bearish forecast.
Also, investors should keep an eye on the average directional movement (ADX) index, which has gradually increased since January 4. It showed a growing uptrend, but was below 20, indicating weak momentum.
Shiba Inu saw a decline in trading volume and bearish sentiment
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According to Santiment, SHIB’s daily active addresses and active addresses decreased in the last 24 hours. Additionally, the weighted sentiment went from positive to negative. This showed a bearish outlook on the asset as buying pressure eased.
If the trend continues, the bears could gain more influence in the market.