Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Shiba Inu continued its decent short-term recovery, as it hit the $0.000007 price level
- Selling pressure persisted, but bullish conviction remained strong
Shiba Inu [SHIB] continued its gentle recovery from the $0.000006 price zone. Memecoins have seen low interest in recent times and this has been reflected in low trading volumes for Shiba Inu since early September.
Realistic or not, here’s SHIB’s market cap in BTC terms
AMBCrypto’s previous analysis on 15 October highlighted the possibility of a recovery for SHIB, based on the price action. This projection was validated with the memecoin posting a series of bullish candles on the lower timeframes.
With Bitcoin [BTC] leading the bullish charge over the past week, SHIB traders could turn the short-term recovery into a long-term bullish move.
Buyers show good bullish signs, but need more momentum
Source: SHIB/USDT on Trading View
The daily timeframe underlined the growing bullish recovery with three bullish candles in a row. This was reflected by the Relative Strength Index (RSI) hitting the neutral-50 to suggest an equilibrium between buying and selling pressure.
Furthermore, the stability of the daily trading volume, as shown by the On Balance Volume (OBV), was good news for buyers. However, a sustained long-term bullish rally would need the trading volume to rise significantly.
With the price trading at $0.000007 as of press time, buyers can look to scale the $0.0000075 hurdle on the higher timeframes. This would be a bullish breaker of the previous lower low and could see Shiba Inu easily hit the $0.00000807 resistance.
However, strong capital outflows could be a mitigating factor. The Chaikin Money Flow (CMF) stayed in negative territory with a reading of -0.11. This is a sign that SHIB investors are not actively willing to back a long-term bullish run yet.
Buyers need to be wary of short positions
Source: Coinglass
Due to strong capital outflows, sellers continued to hike their short positions in anticipation of another price drop. Also, the exchange long/short ratio revealed that shorts were in the lead as of the time of writing, with a 51.53% share of the open contracts.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
And yet, the $360k difference between shorts and longs highlighted a slim margin. This suggests that extra bullishness in the market could quickly hand buyers the advantage, resulting in a further advancement for the market’s bulls.