Shiba Inu (SHIB) has faced selling pressure alongside the broader cryptocurrency market, with the token down 1.76% to $0.00000439 over the past 24 hours. The total crypto market capitalization also fell by 1.98%, mirroring the decline in Bitcoin.
The wider market’s sell-off is a cumulative reaction to a multitude of factors that have unfolded worldwide over the past week, primarily caused by political uncertainty post-U.S. midterms, Fed rate hike fears, and geopolitical tensions. As a high-beta memecoin, SHIB has followed Bitcoin’s decline, and subdued ecosystem activity has offered little support so far.
Buyers defend $0.00000426 support
Despite the bearish sentiment, buyers could be attempting to defend the $0.00000426-support level. On the daily chart, SHIB was trading at $0.00000440, within the lower end of the 0%–23.6% Fibonacci retracement zone. The daily structure remains bearish, but early signs of a recovery seemed to be forming.
Momentum indicators suggested that bearish pressure, while in place, had started to ease. The MACD was still below both its Signal and Zero lines, pointing to a bearish trend. However, the narrowing gap between the two lines suggested that the selling momentum could be losing strength. Additionally, the recent uptick in OBV indicated that buying interest had started to grow again, especially around these press time levels. However, this needs to be sustained and accompanied by stronger volume before a more convincing recovery can take shape.
Can SHIB reclaim the 23.6% Fibonacci level?
The 4-hour chart showed SHIB attempting to break above the 23.6% Fibonacci retracement level. A successful move above this resistance would make a short-term recovery more likely, especially as it suggested that buyers were becoming more willing to step in. However, the level still needs to be reclaimed for the sentiment to shift.
The MACD showed an early improvement, with its line turning upwards towards the Signal line, although both remained below zero. This suggested that despite selling pressure starting to decline, bearish momentum would still be dominant. Furthermore, the OBV also ticked higher on the charts, hinting at a fresh wave of buying activity.
Together, these signals suggested that buyers have been making an attempt to build momentum. However, recovery will remain tentative without stronger volume and a sustained move above resistance.
Final Summary
SHIB’s daily structure has been bearish despite early signs of buying interest. A sustained H4 recovery above $0.00000440 could strengthen the bullish case.
