- Shiba Inu has a bullish structure on daily time frames.
- The order imbalance suggests the possibility of a short-term price rebound.
Shiba Inu (SHIB) bulls struggled to break through resistance formations earlier this year. However, on-chain activity has increased. Shibarium TVL has hit an all-time high and its Layer-2 solution recently hit a trading milestone.
Is SHIB set up for integration?
Source: SHIB/USDT on TradingView
On a daily basis, SHIB has a bullish market structure. The higher low of $0.0000266 on December 3 did not see the daily session close below that. However, MFI has fallen from near 80 in early December to 61 at press time.
This shows that momentum is strong, but capital inflows and buying pressure are waning. The decline below the $0.0000295 support level strengthened the bearish short-term bias.
This level has seen significant resistance since April and was broken in the second half of November. Recent losses have brought Shiba Inu bulls back below this level.
From June to November, the $0.00002 resistance zone, highlighted by the red box, was also tested several times before a breakout. SHIB consolidated below this area in October and surged.
This is a possibility that Shiba Inu traders and investors will need to prepare for in the coming weeks. The $0.00003-$0.000037 area has been providing solid resistance since March. It may take time to exhaust sellers in this area.
Order imbalance suggests a possible price rebound.
Source: MobChart
There was a large limit sell order extending from $0.000032 to $0.000035. This means that the price may have a hard time rising above this resistance zone, which also lines up well with the March price action.
Read Shiba Inu (SHIB) Price Forecast for 2024-25
Order imbalance appears to be a small number of sell orders within 10% of the price. This could be perceived as a short-term SHIB buying opportunity and could lead to a bounce towards the $0.00003 resistance area.
Delta has shown a fine balance of buying and selling pressure in recent hours.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.