- Shiba Inus faced a major retracement last week.
- The market structure was optimistic and analysis suggests that strength is still likely to drive the recovery.
Shiba Inu (SHIB) recorded losses as the cryptocurrency market faced selling pressure following changes in Bitcoin (BTC) sentiment. This change could be short-term, but it depends on whether BTC strength ensures that the price does not fall below $40,200.
Canadian cryptocurrency exchange Uphold delisted SHIB and Dogecoin (DOGE). The reason cited was compliance. A recent AMBCrypto analysis highlighted areas where SHIB was trading as a buy zone at press time. Has anything changed since then?
The 50% Fibonacci retracement level remained.
Source: SHIB/USDT on TradingView
The latest selling pressure came after the spot ETF was approved on January 11th. SHIB prices plummeted along with the rest of the market. However, Shiba Inu has a strong market structure on the daily charts.
The H12 bullish order block (turquoise) at $0.0000093 joins the 50% retracement level. So far the bulls have kept the price above $0.00000893.
A daily trading session closing below this level moves the demand zone into the supply zone.
Conversely, RSI fell below the neutral line of 50, signaling a bearish shift in momentum. OBV also declined last week but was still above its December high.
Contradictory signals of momentum and price action are not a problem. Price action takes precedence every time, which means structure is more important here.
Social volume increased in January.
Source: Santiment
The MVRV ratio has been steadily declining since mid-December. It fell below zero on January 18, but was back at 0.194% at press time. This shows that the selling pressure from profit seekers is over, at least in the short term.
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During this period, average coin age showed an upward trend. This shows SHIB’s strong holders and accumulation across the network.
Social volume also increased in January. Together they pointed out an optimistic bias.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.