• Shiba Inu [SHIB] was expected to pull back to the $0.0000115 area before a bullish continuation; however, price action developments over the past 24 hours invalidated this notion and suggested that another drop was likely.
• The next significant levels of support for SHIB were 7% and 11% further south. The 12-hour bullish order block was broken and retested.
• Realistic or not, aggressive Shiba Inu traders could look to enter short positions on a revisit to $0.000011, the bearish breaker.
Shiba Inu [SHIB] had seen a sharp pullback to the 61.8% extension level, followed by a minor rally that was broken and shifted the bias to bearish. Initially, it was expected that the cryptocurrency would see a pullback to the $0.0000115 area before a bullish continuation. However, price action developments over the past 24 hours invalidated this notion and suggested that another drop was likely.
At the time of writing, Bitcoin [BTC] was staying afloat above a support zone with a bullish outlook. The next significant levels of support for SHIB were 7% and 11% further south. The 12-hour bullish order block was broken and retested, and the RSI was continuing to move above neutral 50 to show bullish momentum. Despite this, the market structure had been broken and the session close below the $0.0000113 mark flipped the bullish order block to a bearish breaker.
The On-Balance Volume (OBV) did not see a sharp decline, and the trading volume was also not comparable to the bullish surge earlier this month. In the face of this, the bias had shifted bearish in the near term once more. To the south, the area at $0.0000103-$0.0000106 was likely to be revisited. This level posed stiff opposition to SHIB two weeks ago, but was eventually beaten. Buyers could wait for a bullish reaction in this area before looking for buying opportunities.
Realistic or not, aggressive Shiba Inu traders could look to enter short positions on a revisit to $0.000011, the bearish breaker. If the price does drop to this level, the buyers could then look to capitalize on the opportunity. The overall market sentiment for SHIB remains bearish in the near term and traders are advised to exercise caution.