Shiba Inu [SHIB] is up 5.1% over the past month, but has declined by 4.81% in the past 24 hours. The Open Interest change from yesterday was -16.18%, Coinalyze data showed.
The swift short-term price losses were accompanied by a slide in the spot CVD and a downturn in speculative interest. Alarmingly, the funding rate was also bearish in recent hours.
Together, the short-term signals painted a bearish picture for Shiba Inu. For context, Dogecoin was down by only 1.75% in 24 hours, and Bitcoin [BTC] has slid just 0.37%.
Is this the start of another downward impulse move? Here’s how SHIB swing traders and investors can form their biases based on technical analysis for the coming weeks.
The July-end Shiba Inu bounce was unable to alter the downtrend
The OBV on the daily timeframe has been trending higher over the past ten days. The MACD was also above the zero line to indicate firm upward momentum over the past week.
On July 25 and 26, Shiba Inu trading volumes soared higher, as did the price. Over just one weekend, the popular memecoin had rallied 39.8%, from a low of $0.0000047 to $0.00000583.
While the gains and volume were impressive, the overall structure of the token was still bearish. The weekend rally was only able to momentarily test the $0.0000057 supply zone and the 61.8% Fibonacci retracement level before slumping lower.
This slump has been renewed in the past 24 hours. If the bearish structure continues, a price drop to $0.0000034, the next Fibonacci extension level, can be expected. Such a move would represent a 26.6% decline from current market prices.
Traders’ call to action- Sell once this demand zone is breached
In the short-term, the $0.0000046 demand zone has been important over the past week. The technical indicators showed bears have the upper hand. With the higher timeframe context, it appeared likely that SHIB would continue southward.
Traders can wait for a drop below this support zone to go short. Meanwhile, a move beyond the $0.0000052 level would be the first indication that the late-July bounce was not complete.
Final Summary
- The Shiba Inu rally towards the end of July was not a recovery for the memecoin, but a pullback within a long-term downtrend.
- This pullback has likely ended, and SHIB is likely to see further drawdown.
