- Shiba Inu faced a large retracement over the past week.
- The market structure was bullish and analysis showed bulls still have a good chance of driving a recovery.
Shiba Inu [SHIB] noted losses as the crypto market faced a wave of selling pressure following a Bitcoin [BTC] sentiment shift. This shift could be a short-term one, but that hinges on whether BTC bulls ensure prices don’t fall below $40.2k.
The Canadian crypto exchange Uphold delisted SHIB and Dogecoin [DOGE] among others. The reason cited was regulatory compliance. A recent AMBCrypto analysis highlighted the region SHIB was trading at press time as a buy zone- has anything changed since then?
The 50% Fibonacci retracement level has held out
Source: SHIB/USDT on TradingView
The recent selling pressure came after the spot ETF approval on 11th January. Alongside the rest of the market, SHIB prices slid sharply. However, Shiba Inu has a bullish market structure on the one-day chart.
The H12 bullish order block (cyan) at $0.0000093 has confluence with the 50% retracement level. Thus far, the bulls have managed to keep prices above $0.00000893.
A one-day trading session close below this level would shift the demand zone to supply.
Conversely the RSI dropped below neutral 50 to signal a bearish shift in momentum. The OBV also saw a dip in the past week but still remained above December highs.
The contradictory signals from the momentum and price action are not a concern. The price action takes precedence every time, meaning the structure was more important here.
Social volume saw an uptick in January
Source: Santiment
The MVRV ratio has steadily trended downward since mid-December. It fell below zero on 18th January but pushed back above it at press time to stand at 0.194%. This showed that selling pressure from profit-takers was at an end, at least in the short-term.
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The mean coin age has trended upward during this time. This showed strong holders and network-wide accumulation of SHIB.
The social volume has also increased in January. Together, they pointed toward a bullish bias.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
