Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SHIB made a lower-time frame bearish block (OB) on 12-H chart.
- This OB may reject a price offer. It could tip the balance in favor of bears.
Shiba inu [SHIB] It started the year on a high note. The price of Bitcoin rose from $0.00000792 up to $0.00000880, a gain of over 10%. The rally followed Bitcoin’s [BTC] During the same time, there was an uptrend.
SHIB was trading at $0.00000849 at press time. The 12-hour chart candlestick had a shooting Star with a long tailwick. This indicates the fierce opposition SHIB bulls faced.
The price rejection of the above occurred in a bearish or $0.00000855 as shown on the three-hour chart. This obstacle (red zone) could continue to be a problem for SHIB bulls and cause a price decline to this level.
Read Shia Inu’s [SHIB] Price Prediction 2023-24
The $0.00000855 hurdle: Can bulls overcome it
Source: TradingView, SHIB/USDT
SHIB dropped below its late December trading range of $0.00000822 – $0.00000836 (yellow lines). The $0.00000792 held the downtrend under control, giving bulls support to launch a rally.
The rally began on January 1, 2023, but it was stopped by the red zone (obstacle). The trading range support for $0.00000822 in December was what caused the correction.
However, another rally was unable to overcome the obstacle at press time. SHIB could see a pullback to $0.00000822 if the obstacle continues. If a trend reversal is confirmed then the level could be used as a short-selling target by bears.
Relative Strength Index and Money Flow Index (MFI), were rejected at the 50-mark and 60 marks, respectively. The indicators rose again, indicating an increase in buying pressure and accumulation.
However, RSI also failed to pass the 60-mark. This caused a drop in buying power. It could indicate a price decline if the trend continues.
Bulls would have more leverage if they break above the bearish OB at $0.00000873, which would invalidate the bearish prediction.
Investors should also keep an eye on the Average Directional Movement Index. It has been steadily increasing since January 4th. It indicated an increasing trend towards upwards, but was below 20 units which indicates a weak momentum.
Shiba Inu experienced a decrease in trading volume, and a bearish mood
Source: Santiment
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According to Santiment, SHIB’s daily active addresses and active addresses dropped in the past 24 hours. Additionally, the weighted mood changed from being positive to being negative. As a result, the asset had a bearish outlook.
Bears could have more influence on the market if the trend continues.