Shiba Inu bulls wait for a sign to go long- How good are their chances?

Posted: September 4, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The meme coin has formed a short-term range measuring 9% from low to high.
• The buy orders to the south suggested bears could have a hard time forcing prices lower.

Shiba Inu [SHIB] saw a rise in daily transactions and TVL as the Shibarium ecosystem performed well. A recent report highlighted bearish sentiment behind the meme coin, but there was a massive amount of SHIB withdrawn from exchanges.

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Realistic or not, here’s SHIB’s market cap in BTC’s terms

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The price action has been bearish in the past four days and losses of just over 7% were inflicted. On the other hand, Shiba Inu was trading above a significant demand zone. We may see another bounce to the $0.00000846 level next week.

Shiba Inu has a short-term bearish market structure

On the 4-hour and lower timeframe charts, SHIB has a bearish structure. It has been in a downtrend in the past five days after the rejection from the $0.00000846 resistance. There was a support level at $0.00000776 that has served well in the past ten days.

Further south, there was a bullish order block from the daily chart that spanned from $0.000007-$0.0000076. This area was highlighted in cyan and has been tested twice in the past two weeks. Both instances saw a bounce- but the second one was weaker than the first.

This implied the possibility that the Shiba Inu bulls were tiring. The OBV has been in a resolute downtrend since mid-August and recovery was not initiated. The RSI also showed strong downward momentum.

The Open Interest saw a slight uptick- was this enough evidence to show market sentiment was beginning to sway?

On 31 August and 1 September, the Open Interest fell lower alongside prices. This was a sign of discouraged longs and bearish sentiment. It has not turned around by a significant amount, but the OI did see a minor bounce on 3 September.

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Is your portfolio green? Check the Shiba Inu Profit Calculator

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MobChart data showed that there was limit buy orders for close to 133 billion SHIB in the $0.0000078-$0.0000077 region. This amounted to $1.04 million and was a notable wall of buyers.

A test of this region could see bearish pressure weaken and another bounce in prices. It was unclear if Shiba Inu can initiate a short-term uptrend, but scalpers can target the $0.0000084 level to take profit on their longs in the scenario of a bounce from $0.0000077.