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- The short-term market structure has been in favor of the bulls
- Buyers can wait for a pullback into an interesting area highlighted on the charts before looking to buy
Meme’s rally sometimes marks the final days of a bullish trend in the cryptocurrency market and a local top. This happened at the end of October when Shiba Inu [SHIB] It jumped nearly 55% to reach an all time high before quickly dropping 23% on October 29 and 30. At that time, Bitcoin [BTC] It was rejected at the $20.8K resistance and dropped to $20.1K.
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This time around, BTC and SHIB both posted gains of close to 23.5% since January 8, with Bitcoin reaching the same resistance at $20.8000. SHIB has only kept pace with BTC so far. If Bitcoin can consolidate for a few days, it could give time for money to convert into altcoins, and the Shiba Inu could embark on another big rally.
A retest of the previous resistance area is likely
In the last two trading days, the Shiba Inu managed to rally to the $0.000011 level and has been declining since then. It saw a large candle wick south on January 14, down to $0.00000957. Depending on the price action, this wick is likely to be filled, which means SHIB will push the bottom again.
At the same time, technical indicators showed strong upward pressure. The Chaikin Money Flow (CMF) indicator was well above +0.05 to show significant capital inflow into the market and the Relative Strength Index (RSI) was near 60 to indicate significant bullish momentum.
The four-hour charts showed that the range from $0.0000095 to $0.0000097 was an area of interest. The move above this area on the 5th of December was quickly reversed indicating that it was a liquidity hunt. But this time it could be different.
How much are 100 SHIBs worth today?
First of all, Bitcoin was bullish. BTC filled the inefficiency it left behind and retested a bearish order block of $21.2K, and a pullback to $19K-$19.5K was not out of the question. This could be accompanied by a drop for SHIB to the $0.0000095 interest area.
Such a decline is likely to provide buying opportunities. Traders can look for reversal signals on lower timeframes to enter long positions.
Rising OI showed bullish intent, but some long positions were also liquidated during the recent decline
The market structure of SHIB remained bullish on the four-hour time frame. It would take a drop of SHIB below $0.00000915 to reverse this bias. During the currency rally, OI also went up. This was a sign of money flowing into the market and highlighted a strong bullish intent.
The rally also liquidated short positions, and by larger volumes than any price movement since the November 9 low. This was a significant upward move, and indicated that dips are meant to be bought. An increase in long liquidations is something the bulls could watch, as it could indicate that the Shiba Inu was ready to go up again.