Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
SHIB reached a bearish order block (OB) in a lower time frame on the 12-H chart.
A price rejection on this OB could tip the scales in favor of the bears.
Shiba Inu [SHIB] started the new year well. It rose from $0.00000792 to $0.00000880 and offered over 10% gains. The rally followed that of Bitcoin [BTC] uptrend in the same period.
At the time of writing, SHIB was trading at $0.00000849. The candlestick on the 12-hour chart showed a shooting star with a long tail fuse, indicating the SHIB bulls’ intense opposition from sellers.
The above price rejection occurred in a bearish order of $0.00000855 on the three hour chart. If this obstacle persists (red zone), SHIB bulls could lose ground to bears, forcing a price drop to this level.
Read Shia Inus [SHIB] Price prediction 2023-24
The $0.00000855 Obstacle: Can the Bulls Overcome It?
SHIB fell below the late December trading range of $0.00000822 – $0.00000836 (yellow lines). But the $0.00000792 kept the downtrend in check and provided strong support for bulls to launch a rally.
The rally started on January 1, 2023 but was forced to cool down after hitting the obstacle (red zone). The correction settled with the end of December trading range support of $0.00000822.
Nevertheless, at the time of writing, another rally struggled to overcome the obstacle. If the obstacle persists, SHIB could be pulled back to $0.00000822 in the next two days. Therefore, if a trend reversal is confirmed, the level could serve as a short selling target for bears.
The Relative Strength Index (RSI) and Money Flow Index (MFI) suffered rejections of 50 and 60 marks respectively. After that, the indicators moved up, pointing to increased buying pressure and accumulation.
But RSI was also rejected at the 60 mark, leading to a drop in buying pressure. If the trend repeats, it could indicate a price reversal.
However, a breakout above the bearish OB at $0.00000873 would give bulls more clout and invalidate the bearish forecast.
In addition, investors should keep an eye on the Average Directional Movement Index (ADX), which has been steadily rising since January 4. It showed an increasing uptrend, but it was below 20 units, indicating weak momentum.
Shiba Inu saw a drop in trading volume and bearish sentiment
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According to Santiment, SHIB’s daily active addresses and active addresses have dropped in the past 24 hours. In addition, the weighted sentiment turned from positive to negative. This showed a bearish outlook for the asset as buying pressure eased.
If the trend continues, bears could gain more leverage in the market.
This post Shiba Inu [SHIB]: Extra wins are unlikely if this obstacle remains
was published first on https://ambcrypto.com/shiba-inu-shib-extra-gains-could-be-unlikely-if-this-obstacle-persists/