Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
- SHIB was rejected in a daily bearish order block just above $0.00001.
- On-chain metrics show that despite the surge in social media engagement, investors have cause for concern.
Shiba Inu (SHIB) bulls have delivered profitable returns in December so far, with prices rising by more than 20%. However, technical analysis shows that the recent rally entered bearish territory at $0.00001 and the price soon fell.
The bears retested the area that served as resistance just three weeks ago. It remains to be seen whether this level will act as support and Shiba Inu can sustain the uptrend for another month.
Source: SHIB/USDT
On Balance Volume (OBV) took a huge leap forward in early December. At that time, the price was rising above the $0.0000087 resistance line. This surge represents a significant increase in purchasing volume. RSI also rose to 61 at press time, reflecting strong bullish momentum on the 1-day chart.
Market structure also remained strong as SHIB bulls defended the $0.0000075 area during the mid-November decline. The recent rally also reached the $0.0000105 resistance area, a bearish order block from August.
It is also close to the August monthly high, showing that the $0.0000105-$0.000011 region is a strong supply zone. If the daily trading session closes above that, it will be a positive sign for SHIB bulls. To the north, the next notable hurdle was at $0.00001188.
Social indicators show significant positivity in the market.
Source: Santiment
In December, Shiba Inus prices were up 29.7% before the most recent decline. This fact helped explain the increase in social size. As SHIB prices rose, weighted sentiment also hit a high not seen since mid-August.
Realistic or not, SHIB’s market cap in BTC terms is:
However, other indicators highlighted a bearish bias. For example, the average coin age has been trending downward over the past month. This is an indication that distribution has occurred across the network. This also means increased sales activity. The MVRV ratio is also high, raising concerns that SHIB holders will book profits and increase selling pressure on memecoins.