warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- Shiba Inu took a complete reversal from the 200 EMA because it failed to change the long-term narrative.
- The MVRV and the 30-day Open Interest in the meme crypt were in line with the corresponding price drop.
(For brevity, SHIB prices are multiplied by 1000 from now on)
Shiba Inu [SHIB] Sellers expressed their desire to invalidate the buying rally recently detected on the daily chart. The meme symbol failed to break the $0.0129 resistance near the elevated liquidity range.
Here AMBCryptos Shebaa Inu price forecast [SHIB] for the year 2023-24
The recent bearish move forced a break below the 20 EMA (red) and the 50 EMA (cyan) to confirm an increase in selling momentum. The $0.0103 support is likely to play an important role in tracking the coin’s recovery chances.
At the time of writing, Ship’s stock is trading at $0.01091, down 8.56% in the last 24 hours.
Trend reversal in favor of sellers?
Source: TradingView, SHIB / USD
SHIB showed a strong correlation with the Dogecoin rally as it saw an ROI of over 34% after recovering from the baseline support of $0.00984.
This recovery created a bullish flag structure on the daily time frame. After a firm rejection of the price rally near the $0.0129 mark, SHIB dropped below the key resistance at $0.0118 (former support). Thus, the bears nullified the ascending slopes of the flag.
While the 20 EMA (red) is heading south again, buyers should watch for a possible bearish crossover with the 50 EMA (cyan).
Any immediate or final buying evidence could face a barrier near the $0.0118 resistance. The reversal of this ceiling can provide short-term, short-term opportunities. A close above this level could lead to a retest of the $0.0129 resistance.
If SHIB maintains the new selling pressure, the first major support area may continue in the $0.0103-$0.00984 range.
In addition, the Relative Strength Index (RSI) fell below its mid-line at the time of its pressure to the south. Continued swing below 50 will continue to suppress buying efforts.
However, buyers should look for a possible recovery from the support of unbalanced volumes (OBV). A convincing pullback could give way to a bullish divergence.
Deciphering Effects on MVRV for 30-Day SHIB
Source: feeling
According to Santiment data, the recent decline in SHIB implies a negative attitude to the 30-day MVRV readings. This reading simply suggested a slight advantage for the bears while confirming the weak readings of its daily technical data.
Source: Coinglass
Above that, the open interest of the token has fallen by more than 16.5% in the last 24 hours. This drop simulated lower price action but with a larger size.
Buyers can track any improvement in 24-hour open interest changes to assess the chances of a reversal.
Additionally, the alt shared an 88% correlation for 30 days with Bitcoin. So watching bitcoin’s movement along with general market sentiment can be crucial in identifying any bullish reversals.