Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and solely represents the opinion of the author
- SHIB attempted a rebound after finding a steady break at $0.00001216.
- A rise in near-term selling pressures could undermine a strong recovery.
Shiba Inu [SHIB] The bullish recovery met bear countermeasures. Following the FOMC announcement in early February, Bitcoin [BTC] lost the $23,000 zone and crashed the meme coin.
To read SHIB Price Prediction 2023-24
SHIB found stable support at $0.00001216 and was on the verge of a price rally. However, it failed to clear the $0.00001316 hurdle, giving the bears the upper hand. At press time, the meme coin was valued as of November 2022.
Is a retest of the 50% Fib level likely?
Source: SHIB/USDT on TradingView
At press time, BTC was struggling to reclaim its $22,000 zone. Similarly, SHIB struggled to close above the 61.8% Fib level of $0.00001269. With bearish structure as indicated by the RSI, SHIB could retest the 50% Fib level.
Such a move would allow investors to take advantage of a short selling opportunity at $0.00001216. The RSI was rejected at mid-levels, further increasing the bears’ advantage at press time.
How much is 1,10,100 SHIBs worth today?
However, the Money Flow Index (MFI) has always recovered from the mid-level of the 12-hour chart. Therefore, if the pattern repeats, it indicates increasing demand for SHIB.
Any increase in buying pressure would push the bulls to scale the hurdle at $0.00001316. But the move will invalidate the bearish bias outlined above.
SHIB faced near-term pressure as bearish sentiment increased
Source: Santiment
SHIB saw little demand as short-term supply increased. According to Santiment, supply on exchanges saw an increase, suggesting that more SHIB were being moved to exchanges for offloading.
It denotes short-term selling pressures that could delay SHIB’s long-term recovery.
Accordingly, the supply on exchanges saw a decrease, indicating that the demand for SHIB was low compared to the supply. Such an imbalance between supply and demand could cause SHIB to depreciate in the short term.
Additionally, SHIB’s positively weighted sentiment has weakened significantly since February 3 – following the FOMC announcement. After a momentary market euphoria following the Fed’s 25 basis rate hike, sobriety set in.
The negative sentiment and bearish outlook could undermine the meme coin’s recovery.
However, a bullish BTC and a surge into the $22,000 zone could fuel SHIB’s recovery, hence the king coin’s price action is worth following.
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