Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SHIB was rejected from a one-day bearish order block just above $0.00001
- On-chain metrics revealed investors had cause for concern, despite soaring social media engagement
Shiba Inu [SHIB] bulls have had a profitable December so far, with the prices climbing higher than 20%. However, technical analysis showed that the recent rally ran into a bearish zone at $0.00001, with the prices dropping soon after.
The pullback retested a zone that had served as resistance just three weeks ago. It remains to be seen if this level would serve as support and keep Shiba Inu in its month-long uptrend.
Source: SHIB/USDT on
The On-Balance Volume (OBV) took a giant leap higher in early December. At that time, the prices were climbing above the $0.0000087 resistance level. This surge signified a huge increase in buying volume. The RSI also shot higher and was at 61, at press time, to reflect strong bullish momentum on the one-day chart.
The market structure remained bullish as well, as SHIB bulls defended the $0.0000075-zone during the mid-November dip. The latest rally also reached the $0.0000105 resistance zone – A bearish order block from August.
It was also close to the monthly high from August, outlining the $0.0000105-$0.000011 region as a strong supply zone. A daily trading session close above it would be a positive sign for SHIB bulls. To the north, the next notable obstacle stood at $0.00001188.
Social metrics show hefty positivity in the markets
Source: Santiment
In December, Shiba Inu rallied by 29.7% before its most recent dip. This fact helped explain the hike in social volume. The weighted sentiment also hit a high not seen since mid-August as SHIB prices rallied higher.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
However, other metrics highlighted a bearish bias. For instance, the mean coin age has trended lower over the past month. This is a sign that there has been network-wide distribution. It also signalled heightened selling activity in play. The MVRV ratio was also high, raising concerns that SHIB holders would choose to book profits and add to the selling pressure behind the memecoin.